A recent reply by the Ministry of Steel in Rajya Sabha on the closure of Visvesvaraya Iron and Steel Plant (VISP) in Bhadravati has upset employees, who were hopeful of its revival following a decision by Steel Authority of India Limited (SAIL) to start operations in August 2023.
Minister of State for Steel Faggan Singh Kulaste, in his reply to an unstarred question on August 7, reiterated the closure of the VISP. “The government had accorded in-principle approval for strategic disinvestment of VISP in October 2016. Subsequently, due to the inability expressed by the shortlisted bidders to participate further in the transaction for strategic disinvestment, the expression of interest (EoI) for disinvestment was annulled, and the process for closure of VISP has been conveyed through an office memorandum of the Department of Investment and Public Asset Management dated October 14, 2022,” the Minister said in the reply.
Interestingly, this reply from the Ministry came a week after the Steel Authority of India Limited decided to resume production at the plant on August 1.
The employees, who had been protesting against the closure for several months, were in celebration mode on the day. Shivamogga Lok Sabha member B.Y. Raghavendra and the people of Bhadravati, besides the employees, welcomed SAIL’s decision.
As per SAIL’s decision, raw materials were supplied from Bhilai to resume operations at the primary mill, where steel rolling takes place. The actual work began on August 28.
SAIL has agreed to send 3,000 tonnes per month of steel from Bhilai Steel Plant in Chhattisgarh to VISP for rolling operations. The blast furnace and steel-making shop (SMS) are not in working condition. Except for the rolling of steel, no other activity takes place at the plant.
‘Only an eyewash’
“Unless money is invested to activate other operations, including steel-making shop, the revival of the plant will not happen. What is being done now is only an eyewash,” alleged an employee. He opined that the plant could be closed at any time as the Ministry of Steel had not changed its position, and the Minister’s reply in the Rajya Sabha did raise doubts about the intention of reviving the plant.
After the primary mill started functioning on August 28, Lok Sabha member B.Y. Raghavendra issued a statement expressing satisfaction over his role in the revival of the unit, along with the employees. “I will continue my efforts to ensure the unit starts functioning at its full capacity and regains its past glory,” the MP said.
Employees appreciate his efforts in making the unit resume production. J. Jagadish, president of VISP employees’ association, said, “It is because of Mr. Raghavendra’s efforts that the plant is active now. We hope that his efforts to strengthen the plant succeed in the coming days.”
VISP was set up in 1918 by Nalwadi Krishnaraja Wadiyar of Mysuru royal family. Gradually, the unit ramped up production and became a pioneer in the production of high-quality alloys, special steels, and pig iron. However, in recent years, the unit has incurred losses. As of now, the unit is operated by 1,340 contract labourers and 211 permanent employees. Following the earlier closure order, they held a series of protests.
