Visakhapatnam Steel Plant Workers Fear Privatisation After Fresh VRS Call

Concerns about the future of Rashtriya Ispat Nigam Limited, the corporate entity of the Visakhapatnam Steel Plant, are growing among employees even after the Centre announced a Rs 11,440 crore revival package. The worry increased after the Human Resources Department issued a new circular calling for applications for a third round of the Voluntary Retirement Scheme.

Trade unions say the move has strengthened fears of disinvestment and privatisation. They point to steps taken since the revival package was announced about a year ago, including two rounds of the Golden Handshake Scheme, a sharp cut in contract workers, and the outsourcing of maintenance work at key units. Union leaders believe the steady reduction of both permanent and contract staff is aimed at preparing RINL for transfer to a private company.

The Visakhapatnam Steel Plant, known as Vizag Steel, was set up after a long public movement under the slogan “Visakha Ukku, Andhrula Hakku”, during which 32 people were killed in police firing. It is India’s first shore-based integrated steel plant, with a capacity of 7.3 million tonnes, and is seen as a matter of pride for Andhra Pradesh and Telangana.

The new circular has been criticised by CITU, AITUC, and the Visakha Steel Employees’ Congress, which say it is part of a plan to push privatisation. Employees retiring after January 1, 2026, have been asked to apply online between January 1 and January 20, with an option to withdraw applications until January 23. Many employees remain uncertain about the plant’s future.