Amid growing concerns about the potential shutdown of Rashtriya Ispat Nigam Limited’s Vishakapatnam Steel Plant, the central government has intervened with crucial financial assistance aimed at reviving operations. Speculations had intensified after the closure of Blast Furnace BF-3, Annapurna, which sparked outrage among employees. The situation is dire, with only one of the three furnaces, Krishna, currently operational, and its available cooking coal expected to last only a few more days.

In response to the crisis, Andhra Pradesh Chief Minister Chandrababu Naidu has assured the public that his government is committed to halting any move toward the privatization of the steel plant. He has promised to engage in discussions with the central government to streamline operations and to restart one of the closed blast furnaces by the end of the month.

On Friday, the Ministry of Steel announced a significant aid package of ₹2,500 crores to support the steel plant, with plans to restart an additional blast furnace alongside the existing one. Furthermore, the government has allocated ₹500 crores for statutory payments and dues to ensure the financial stability of the facility.

To expedite the process, the Centre has directed the State Bank of India to release the funds by the coming Monday. The Steel Ministry has also pledged to have the plant operating at full capacity by the end of November, assuring a continuous supply of raw materials and coal.

Given the coalition between the TDP and Janasena parties with the NDA at the Centre, the initial plans to privatize the Vizag Steel Plant may be reconsidered in light of these developments, reflecting a significant shift in the approach to this vital industrial asset.