₹11440 Crore Package for Vizag Steel Plant to Secure Future Says Andhra CM
Andhra Pradesh Chief Minister N Chandrababu Naidu declared that the issue of privatising the Vizag Steel Plant (VSP) will no longer be a concern, thanks to the Centre’s approval of a robust Rs 11,440 crore financial revival package. Speaking at a press conference in Undavalli, Naidu reassured the people of Andhra Pradesh that this much-needed support would secure the future of VSP, which has long been a key player in the region’s industrial landscape.
Naidu stressed that this package, funded by taxpayers’ money, would be used responsibly to revitalise the steel plant, which has faced financial challenges in recent years. “The issue of privatisation of the Vizag Steel Plant is resolved. With the revival package now in place, we can focus on making it a successful, self-sustaining operation,” Naidu said. He emphasised the importance of utilising the funds effectively and urged all stakeholders to work towards the common goal of restoring VSP to its former glory.
The chief minister also called on the Centre to swiftly appoint a professional management team to oversee the plant’s operations and bring in a capable CEO to guide its revival. “For VSP to succeed, we need an experienced management team. The appointment of a qualified CEO is vital,” he stated. In a bid to ensure the supply of raw materials required for the steel plant, Naidu revealed that the state government would collaborate with the National Mineral Development Corporation (NMDC). This partnership will focus on securing a steady flow of iron ore and other essential resources for VSP, ensuring that the plant can operate at full capacity once revived. One of the highlights of the announcement was Naidu’s mention of the plant’s enormous land bank, covering 20,000 acres, a unique advantage that sets VSP apart from other steel plants in India. This vast land reserve, Naidu pointed out, holds significant potential for future development and could play a crucial role in the plant’s growth and profitability.
“The land bank is an asset that no other steel plant in India possesses. It can be a cornerstone for VSP’s long-term success. We are committed to transforming VSP into a strong and sustainable organisation,” Naidu added. He also appealed to the workers of VSP to support the efforts being made to revive the plant and contribute to its successful future. In addition to the VSP revival, Naidu highlighted several other significant developments in the state, such as the allocation of Rs 15,000 crore for Amaravati’s greenfield capital and Rs 12,157 crore for the Polavaram Project. These investments reflect the state government’s broader commitment to infrastructure development and economic growth.
The announcement of the Rs 11,440 crore package for VSP has been welcomed by local stakeholders. MP Chhatarpal Gangwar from Bareilly, in a show of support, echoed Naidu’s sentiments, acknowledging that the revival plan could prove transformative for the region’s economy and employment landscape. Naidu also highlighted several ongoing initiatives aimed at boosting North Andhra’s economy, including the ongoing construction of a 14 MT ArcelorMittal steel plant in Anakapalli and the upcoming Google data centre. These projects are expected to enhance the region’s industrial footprint and attract significant investments, further bolstering the state’s growth. With the government’s commitment to reviving the Vizag Steel Plant and transforming it into a powerhouse of industry, Andhra Pradesh is poised for a bright economic future. With crucial steps being taken towards ensuring the plant’s success, it is hoped that VSP will once again become a major contributor to both the state’s economy and the nation’s steel production capacity.
