ON January 16, 2025, the Cabinet Sub-Committee on Economic Affairs, chaired by Prime Minister Narendra Modi, decided to allocate Rs 11,440 crore for the revival of Rashtriya Ispat Nigam Limited (RINL), popularly known as Vizag Steel. Minister of Steel and Mines, Kumara Swamy, visited Vizag Steel and announced the details of the revival package on January 29, 2025.

The minister made it clear to trade union leaders in Visakhapatnam that the allocated amount would be used solely for debt repayment and not for the operation of Vizag Steel. This clearly indicates that once Vizag Steel is debt-free, it can be easily handed over to private players, exposing the central government's real hidden agenda.

NDA partners, Andhra Pradesh Chief Minister Chandrababu Naidu and Deputy Chief Minister Pawan Kalyan, hailed the package as a major success of their government in securing funds for Vizag Steel. However, this package is nothing but a ploy. If the funds are not utilised for operations – including salaries for workers, procurement of raw materials, and essential maintenance – how will the industry function? If the package is restricted to debt repayment, the plant will sink into further losses, making it easier for the Government of India to privatise it without resistance.

The central government aims to weaken Vizag Steel rather than strengthen it, paving the way for its strategic sale. The TDP and Janasena, as NDA's ruling partners, are trying to escape their promises of protecting the Vizag Steel Plant by announcing a package that does nothing to help it recover from its current crisis.

The struggle committee organised a three-day strike, conducted rasta rokos across the state, and formed a 10-kilometre human chain with 10,000 workers. They also held meetings with all political parties except the BJP, along with national-level trade union meetings and discussions with Samyukt Kisan Morcha leaders.

Two relay hunger strike tents continue to operate – one at the main gate of Vizag Steel on the national highway and another in the heart of Vizag City at the Gandhi Statue.

The Government of India made multiple attempts to push for the strategic sale of Vizag Steel but failed. During the COVID-19 period, the Ministry of Steel signed an MoU with POSCO, the South Korean steel giant, to hand over 4,000 acres of RINL land. However, when the POSCO team visited the RINL guest house on the hilltop, they were gheraoed by protesting workers. As a result, POSCO withdrew from the MoU and left India.

The Government of India formed three committees to prepare a valuation report for RINL’s privatisation. However, the struggle committee successfully blocked the valuation team from physically entering the Vizag Steel Plant, and to this day, no valuation report has been prepared.

Meanwhile, Vizag Steel workers have been forced to work without wages for the last five months – an inhumane act that violates their fundamental right to livelihood and the Payment of Wages Act. Last year’s bonuses, house rent allowances, and leave salaries also remain unpaid. Additionally, Rs 600 crore in PF contributions from both employees and management has not been deposited with the PF department for the last five months, preventing workers from accessing PF loans for essential needs like children’s education and marriages.

Further worsening their condition, the free bus facility for workers' children attending colleges and universities has been revoked. The hospital meant to provide medical care to thousands of workers and their families is not stocked with medicines or staffed with enough doctors. Moreover, a biometric system has been introduced at Vizag Steel Plant as a tool for harassment – denying workers permissions even in emergencies. While such oppressive measures are not enforced in other steel plants, Vizag Steel workers are being targeted and deliberately denied even their basic rights, simply because they are resisting privatisation.

The BJP government, acting out of political vendetta, is depriving workers of their wages and existing benefits. Even minor internal decisions require approval from the central government. The salaries and benefits of Vizag Steel workers must be paid immediately. If the Government of India and the Andhra Pradesh state government truly intend to revive Vizag Steel Plant, the package funds must be allocated toward its maintenance and operations, not just debt repayment.

The workers are making immense sacrifices, yet, despite their empty stomachs, they are producing 110 per cent efficiency in the blast furnace (BF), outperforming all other steel plants in the country. Over the last five years, more than 5,000 workers and employees have retired. With a reduced workforce, the remaining workers are being forced to work under extreme stress. However, instead of acknowledging their efforts, the government is unfairly blaming them for the plant’s losses.

The workers ask: What more must we sacrifice? What benefits have we received in return?

For the last three years, the BJP-led central government has deliberately created innumerable hurdles to disrupt the plant’s operations, conspiring to push it into severe financial losses. Yet, the workers have tirelessly kept the plant running at its best capacity. The government has played a particularly destructive role by obstructing the supply of raw materials to Vizag Steel Plant. Due to the lack of raw materials, only one of the plant’s three blast furnaces has been operational for the last two years.

The Ministry of Steel deliberately reduced the supply of iron ore from its own National Mineral Development Corporation (NMDC). Additionally, 2 lakh metric tons of coking coal, imported from Australia, was deliberately withheld at Adani’s Gangavaram Port for 45 days – even though the port is located right next to the plant’s compound wall. This conspiracy between the BJP government and Adani resulted in a loss of Rs 3,000 crore for Vizag Steel. The Railway Ministry further worsened the situation by restricting the supply to only two to four railway rakes instead of the required seven.

There is a saying in Telugu: "Karnudi chavuki padi vela karanalu" – a reference from the Mahabharata that means Karna’s death was caused by multiple conspiracies. Similarly, the government's actions appear to be designed to systematically reduce production and push the plant into irrecoverable losses, including Rs 4,848 crore in losses during 2023–2024.

The plant is already struggling with a severe workforce shortage due to retirements and natural attrition. To make matters worse, the Minister of Steel recently announced a Voluntary Retirement Scheme (VRS). Already, 1,620 highly skilled workers have opted for VRS, and the management has allocated over Rs 506 crore for these payouts. However, the real motive behind this scheme is clear – the management intends to push out experienced workers and replace them with contract labourers who will be paid meagre wages, serving only corporate interests.

The allotment of captive iron ore mines is the only permanent solution to the problems faced by Vizag Steel Plant. All other steel plants, whether in the public or private sector, have captive iron ore mines as per the law. However, the government has turned a deaf ear to the demand for allotting captive mines to Vizag Steel Plant. At the same time, both the central and Andhra Pradesh state governments have recommended mines for Arcelor Mittal Steel but not for Vizag Steel Plant. This exposes the pro-corporate bias of the AP TDP government, which favours private companies over public sector industries.

This is precisely why the workers and the struggle committee are demanding that the Rs 11,440 crore package be fully utilised for the operation of the plant. If properly allocated, this funding would enable the plant to turn around and become profitable, bringing much-needed relief to the workers while also strengthening the national economy – particularly that of Andhra Pradesh.

On February 12, 2021, CITU took the initiative to form a struggle committee comprising all 23 permanent employees’ unions, including BMS, the Steel Executives Association, and contract workers' unions. Since then, the struggle committee has waged relentless and intense protests against the Government of India, demanding the withdrawal of the decision to carry out a strategic sale of RINL. This struggle has now entered its fourth year.

Despite repeated attempts, the Government of India has failed to disinvest even 1 per cent of Vizag Steel so far. This is a testament to the strength and success of the Vizag Steel struggle committee, the workers, and the people of Andhra Pradesh in resisting privatisation.