Date: January 18, 2025
Vizag Steel Plant Revival: Centre Approves 11,440 Crore Package
₹11,440 Crore Boost for Vizag Steel Plant Revival
In a monumental decision, the Union Government has approved a ₹11,440 crore financial package to revitalize the Vizag Steel Plant, also known as the Visakhapatnam Steel Plant. Union Minister Ashwini Vaishnaw announced the package after the Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, gave its nod. This is a significant achievement for Andhra Pradesh, attributed to the strategic influence of its 21 MPs supporting the Central Government.
Chandrababu Naidu’s Persistent Efforts
Former Chief Minister Chandrababu Naidu has consistently prioritized the Vizag Steel Plant’s revival. Over multiple visits to Delhi. He met with Prime Minister Narendra Modi, Finance Minister Nirmala Sitharaman, and Union Steel Minister Krishnamurthy Kumaraswamy, advocating for financial aid. His persistent efforts have finally borne fruit, as the CCEA approved the much-needed package.
Vizag Steel Plant’s Financial Struggles
The Vizag Steel Plant, with an annual production capacity of 7.3 million tonnes, has faced significant financial setbacks. In the 2023-24 fiscal year, the plant reported losses of ₹4,848.86 crore, following ₹2,858.74 crore losses in 2022-23.
Recognizing the plant’s dire situation, Union Steel Minister Kumaraswamy, along with stakeholders like MP GVL Narasimha Rao and workers’ unions, assessed the need for ₹18,000 crore to stabilize operations. Emergency financial aid of ₹500 crore for GST dues and ₹1,150 crore for raw material procurement was provided in two installments as interim relief.
Revival Package: A Ray of Hope
The recently approved ₹11,440 crore package marks a turning point for the steel plant’s future. The funds are expected to address the plant’s operational challenges and pave the way for stability and growth.
This development underscores the political impact of Andhra Pradesh’s 21 MP seats. Which have aligned with the Central Government, demonstrating the benefits of strategic collaboration.
Conclusion
The revival package is a significant win for the Vizag Steel Plant and the state of Andhra Pradesh. It showcases the power of effective leadership and collaboration between state and central governments. As the financial aid is set to rejuvenate the steel plant. This milestone reinforces the importance of strategic support and sustained advocacy.