Andhra Pradesh Chief Minister N Chandrababu Naidu hailed the Rs 11,400 crore financial package to revive the Visakhapatnam Steel Plant, and thanked Prime Minister Narendra Modi. For four years now, employees and workers have been protesting the Union government’s move to privatise the Visakhapatnam Steel Plant (VSP), with support from all major political parties in Andhra Pradesh.
Protests were also held against the privatisation of the plant during Prime Minister Narendra Modi’s recent visit to Vizag on January 8. Even on January 15, during the Sankranthi festival, employees staged protests demanding pending salaries. The steel plant has around 20,000 employees, with thousands more indirectly dependent on it for employment.
Naidu took to X to react to the Union Cabinet’s decision and termed it an emotional and proud moment for the people of Andhra Pradesh.
"Today marks a historic moment etched in steel. It is an emotional and proud moment for people of Andhra Pradesh, as the Union Government, in response to GoAP's consistent efforts since the formation of NDA Government, has approved financial support of Rs 11,440 crore to revive the Vizag Steel Plant," he said.
The Chief Minister extended ‘heartfelt’ gratitude to PM Modi for his unwavering support to the Steel Plant. He assured that this will contribute to the PM’s vision of nation-building as part of Viksit Bharat – Viksit Andhra.
Naidu, whose Telugu Desam Party (TDP) is a key ally of BJP-led NDA in the Union government, also thanked Union Finance Minister Nirmala Sitharaman and Union Heavy Industries and Steel Minister HD Kumaraswamy for their support.
"The Vizag Steel Plant is more than just a factory - it stands as a monument to the struggles and spirit of the people of Andhra Pradesh, holding a special place in the hearts of all, especially the people of Vizag. This was not merely an election promise; it was a deeply personal commitment we were determined to honour. Good days ahead for Andhra Pradesh," added Naidu.
Prime Minister Narendra Modi said that the Visakhapatnam Steel Plant has a special place in the hearts and minds of the people of Andhra Pradesh. The Prime Minister posted on X that during the Cabinet meeting, it was decided to provide equity support of over Rs 10,000 crore for the plant.
“This has been done understanding the importance of the steel sector in building an Aatmanirbhar Bharat,” he said.
Earlier, Union Minister Ashwini Vaishnaw announced that the Prime Minister approved a revival package worth Rs 11,440 crore for Rashtriya Ispat Nigam Ltd (RINL), the corporate entity of Visakhapatnam Steel Plant. In the overall package of Rs 11440, fresh equity infusion would be worth Rs 10,300 crore and the conversion of working capital loan into preferred share capital of Rs 1,140 crore.
The Union Minister told reporters in Delhi that the Visakhapatnam Steel Plant is a very important steel company in the overall steel sector of the country.
He hoped that with this revival package, many of the historical legacy problems that RINL used to face would be resolved.
Andhra Pradesh’s Deputy Chief Minister Pawan Kalyan also thanked Prime Minister Modi for the financial package.
"The sacrifice of Amruta Rao garu and countless others who gave their lives for the Visakhapatnam Steel Plant in 1966 burns eternal in our hearts. Their blood and tears laid the foundation for what stands today not just as a factory, but as the pride and identity of Telugu people,” Pawan Kalyan said in his post on X.
“Today, the NDA government's decision of providing a financial package of ₹11,440 crores for the Visakhapatnam Steel Plant isn't merely a number - it represents renewed hope for thousands of families: every worker whose hands have shaped steel, every employee who has dedicated years of service, and every contractor who has stood by this plant through its challenges,” said the actor-politician.
The Jana Sena leader thanked the Prime Minister on behalf of the people of the state for ‘steadfast commitment to our state's development, your vision of Atmanirbhar Bharat finds one of its strongest pillars in our Visakhapatnam Steel Plant.’
“We assure the people of the country that our government in the State led by our Hon'ble Chief Minister Nara Chandrababu Naidu garu shall ensure that Visakhapatnam Steel Plant will not just survive - it will thrive and stand as a testament to Telugu pride in building Viksit Bharat 2047. This is not just a financial revival - but the fulfilment of a promise written in the sacrifices of 1966. The spirit of Visakhapatnam Steel lives on!,” the Deputy Chief Minister added.
(With IANS inputs)