Visakha Ukku committee leaders urge Parliament panel to resolve VSP crisis

Representatives of the Visakha Ukku Parirakshana Porata Committee met a delegation of the Parliament Standing Committee on Defence in the city on Wednesday and submitted a memorandum, seeking urgent intervention into the crisis at the RINL-Visakhapatnam Steel Plant (RINL) among other issues.

The Parliament Committee led by Chairperson S. Radha Mohan Singh includes MPs Comrade V. Selvaraj, Jothimani, Jagadish Shettar, Rajiv Bhardwaj, Mujibulla Khan, and Bishnu Pada Ray.

The porta committee leaders included D. Adinarayana, Mantri Rajasekhar, J. Ayodhyaramu, Dalinaidu, Suresh Babu, J. Ramakrishna, and L.V. Ramana.

During the meeting with the Parliament committee, the Ukku Porata Committee leaders highlighted that RINL is the only shore-based integrated steel plant in the country and is vital for India’s steel export growth and national wealth.

The Porta Committee urged the MPs to raise these issues in the Parliament, with the necessary recommendations to the Union Ministry of Steel.

“Despite the Central Government providing ₹11,400 crore and the State government contributing ₹2,600 crore for its protection, the VSP continues to incur losses. The lack of captive mines is the primary reason for high production costs. The Parliament Committee must bring it to the notice of the Centre,” the Porata Committee said in their memorandum.

They sought allocation of captive iron ore mines to the RINL, its merger with SAIL (Steel Authority of India Limited) to ensure a steady supply of raw materials and mitigate financial strain.

“Workers are receiving wages based on the 2012 pay scale now, while the officers remain on the 2007 scale. Despite this, the management has reportedly implemented further wage cuts. The House Rent Allowance (HRA) has been withheld. Power charges in the Steel Township have been hiked to unprecedented levels, and the 24-hour canteen facility—essential for shifts—has been discontinued,” the Porta Committee leaders said.