The Andhra Pradesh government on Wednesday informed the Legislative Assembly that there is no proposal to privatize Rashtriya Ispat Nigam Limited (RINL), the legal entity of Visakhapatnam Steel Plant (VSP), and said a structured recovery package is being actively implemented.
The question was raised by YSRCP MLA Matsyarasa Visweswara Raju, Tatiparthi Chandra Sekhar and Buchepalli Siva Prasad Reddy during the Question Gour. Since the members were not present, the answer was considered answered.
Industries and Commerce Minister TG Bharat denied reports of privatization due to mounting losses. Citing inputs from RINL, the government said the company expanded capacity to 6.3 million tonnes per annum (MTPA) of liquid steel in 2005-06 and 2014-15 and later increased it to 7.3 MTPA by 2017-18 through upgradation.
However, the expansion coincided with a global decline in steel, resulting in losses from 2015–16, except for 2018–19 and 2021–22. Depreciation and interest expenses increased from ₹705 crore in 2014–15 to ₹3,460 crore in 2023–24 due to capitalization of projects without matching increase in production.
Financial stress also hampered raw material procurement, limiting operations to two blast furnaces from February 2022, barring a brief recovery in early 2024. External factors such as Cyclone Hudhud, Chinese dumping, industry slowdown, COVID-19 disruption, coal shortages, export duties and the Adani port strike further affected performance, the minister said.
In a revival, the government said the Union Cabinet had approved a ₹11,440 crore package on 16 January 2025 with a phased release while the final tranche of ₹796 crore was awaited.
The state also supported the conversion of ₹2,400 crore of electricity in favor of Andhra Pradesh Eastern Power Distribution Company Limited into preference share capital. It deployed APSPF personnel free of charge, reaffirming continued coordination with the Center for Long-Term Plant Viability.
Published – March 4, 2026 7:57 PM IST
