Facing privatisation, Vizag Steel Plant posts impressive production-sales figures

Faced with the centre's privatization bid, the Vizag Steel Plant has posted a sales turnover of around Rs 18,000 crore in 2020-21, “the second-highest since its inception.”

On March 21, the period overlapping with the protests, the Navratna PSU achieved a sales turnover of Rs 3,300 crore and sales volume of 7,11,000 tonnes, “for the first time in the history of the company.”

“This is a whopping 42 per cent more than the previous best of Rs 2,329 crores in March’19,” PK Rath, CMD, Rashtriya Ispat Nigam Limited, the corporate entity of VSP, said on Thursday.

VSP, operating under the steel ministry, has also registered a net profit of about Rs 740 crore in the last four months.

Workers of the Vizag Steel Plant are in agitation mode since the first week of February, opposing the Narendra Modi government's plan to privatize the first shore-based integrated steel plant in the country.

The Rs 18,000 crore sales turnover in 2020-21 represents “an impressive growth of 13 per cent and the sales volumes reached 4.45 million tonnes, with a four per cent growth,” Rath said while addressing the company's senior officials in a virtual meeting.

“The overall improvement in the company's performance has been possible due to the record levels of production being achieved since December’ 20,” the CMD stated as he complimented the works collective for achieving the best ever production figures exceeding the capacity of 6.3 Million Tonnes Per Annum expansion.

“During 2020-21, we achieved export sales of 1.3 Million Tonne, which is 261 per cent higher than the previous year. In addition to this, 35 out of total 57 ocean export contracts were finalized with 100 per cent advance payment terms. Having established such a good market for exports, there should not be any looking back,” Rath said.

The lack of captive iron ore mines is stated as the main reason for the company's losses over the years.

The workers protest against the privatization has received widespread support from the public and political parties in Andhra Pradesh. A statewide shutdown was also organized in their solidarity on 5 March.

However, days later, finance minister Nirmala Sitharaman has stated in Parliament that the centre would proceed with the 100 per cent disinvestment of its share in Vizag Steel, by way of privatization.

RINL has spent around Rs 10 crore on CSR activities last year including Rs five crore given to PM-CARES for Covid-19 mitigation.