RINL-VSP gets Rs 2,400-cr power dues converted into equity; TDP hails historic relief

In a move described as historic, the State government has converted ₹2,400 crore of pending power dues of Rashtriya Ispat Nigam Limited-Visakhapatnam Steel Plant (RINL-VSP) into equity. Telugu Desam Party (TDP) State president and Gajuwaka MLA Palla Srinivasa Rao called the decision a major boost to the plant and a turning point for Andhra Pradesh’s steel industry.

Speaking on Thursday, Mr. Rao said the measure reflected the vision of Chief Minister N. Chandrababu Naidu and the coalition government’s focus on industrial revival. “This step provides financial stability to the plant and secures the livelihoods of thousands of families dependent on it,” he said.

Of the Rs 11,500-crore revival package announced earlier, Rs 9,500 crore has already been released. The conversion of power dues into share capital, Mr. Rao noted, further strengthens the plant’s financial foundation.

He also took aim at critics, particularly the CITU and factions linked to YS Jagan Mohan Reddy, calling claims that the plant cannot function without captive mines “complete fabrication.” Explaining the operational requirements, he said production must reach 60% of capacity — around 15,000 metric tonnes per day — to break even. With the third blast furnace now running, production is steadily improving.

Mr. Rao accused the previous government of burdening RINL-VSP with Rs 38,500 crore in debts, including unpaid salaries and maintenance costs, and said some were now spreading doubts among genuine employees after previously siphoning off funds through fictitious workers.

“This is far more than a fiscal reform; it is an assurance to the people whose lives revolve around the plant,” he added.