Visakhapatnam MP M Sri Bharat Urges Centre to Act on RINL Crisis; Seeks SAIL Merger and Full-Fledged Management

Visakhapatnam MP M Sri Bharat, along with Visakhapatnam Steel Executives Association (SEA) President and NCOA Deputy Secretary General Katam Chandra Rao and SEA General Secretary KVD Prasad, met Union Minister for Steel and Heavy Industries H.D. Kumaraswamy to discuss the pressing issues concerning RINL – Visakhapatnam Steel Plant (VSP).

During the detailed discussion, the delegation urged the Centre to appoint a full-fledged Chairman and Directors for RINL and to bring the plant under the administrative control of the Steel Authority of India Limited (SAIL).

They explained that despite Chief Minister Nara Chandrababu Naidu and the Steel Minister supporting full-capacity operations at VSP, the revival package announced ten months ago has not been effectively utilized. The MP reportedly conveyed that no meaningful decisions were taken to enhance production, affecting the plant’s turnaround prospects.

⚠️ Concerns Over HR Policies and Administrative Decisions

The delegation highlighted that, over the past year, policies have been implemented in a way that weakened VSP’s strongest pillar — its human resources.

They apprised the Minister of:

Unwarranted changes in key department heads

Suspensions, show-cause notices, intimidation, and forced resignations

Illegal linkage of salaries to production, contrary to the Factories Act, DPE guidelines, and existing wage agreements

Hundreds of young, talented employees leaving due to promotions being withheld for five years

They added that poor production management in crucial sections has persisted for the past four years, worsened by the mass exit of experienced employees.

⚙️ Operational Inefficiencies and Financial Strain

The delegation expressed concern that the third blast furnace was being restarted without adequate raw material supply, further increasing costs.

The cost of raw materials has surged 15% in five months, especially due to the purchase of pilot coke and BF coke.

Opening blast furnaces during the monsoon season reportedly caused losses amounting to hundreds of crores.

They requested urgent action to:

• Restore promotions for officers

• Clear pending dues of retirees

• Release payments for voluntary retirement beneficiaries as per the approved package

🔄 Demand for SAIL Merger & Sector Status

A major request was for the government to take an immediate decision to merge RINL with SAIL, declaring the steel sector strategic and strengthening RINL’s management structure.

It was also urged that the recently revised gratuity limit (from ₹20 lakh to ₹25 lakh) applicable to SAIL employees be extended to Visakhapatnam Steel Plant employees.

📜 Reference to Past Revival

The delegation recalled how, in 2002, VSP faced severe challenges but revived under the leadership of Chairman BN Singh, who efficiently managed supplies and boosted employee morale.

They stressed that the same level of leadership and coordination is missing today.

🏛️ Government’s Assurance

After hearing the delegation’s submissions, Minister Kumaraswamy assured that appropriate action will be taken soon after examining all the issues and suggestions.