Central package for VSP not used properly, association tells Union Steel Minister

Visakhapatnam Steel Executives Association (VSEA) leaders, in the presence of Visakhapatnam MP M. Sribharat, met Union Steel Minister H.D. Kumaraswamy in New Delhi on Wednesday, requesting him to ‘protect’ the Rashtriya Ispat Nigam Limited-Visakhapatnam Steel Plant (RINL-VSP).

SEA president Katam Chandra Rao, general secretary K.V.D. Prasad had a detailed discussion on the RINL-VSP issues with the Union Steel Minister.

In a release, Mr. Prasad said they requested Mr. Kumaraswamy to appoint a full-fledged Chairman and Directors for the VSP and to bring the management under the control of Steel Authority of India (SAIL).

“The package for the VSP provided by the Central government has not been utilised properly. Right decisions have not been taken to increase the production of the plant,” the SEA leaders claimed.

Policies have been implemented in a way that has weakened human resources at the VSP, they alleged and informed the Union Minister about the ‘unwarranted changes’ in department heads of the key sections, suspensions, show-cause notices, and intimidation and resignations, the release said.

“We explained that salaries were paid in December by linking them to the production, in contrary to the Factories Act and Department of Public Enterprises guidelines, and the wage agreements made in accordance with the laws,” Mr. Prasad said.

The SEA leaders said that hundreds of talented young employees have been leaving the company due to the withholding of promotions in the last five years, he said.

“Moreover, proper maintenance management in key sections has not been done for the last four years. The third blast furnace was started without adequate raw materials. The cost of raw materials, which is already high, has increased by 15% in the last five months due to the purchase of pellets and blast furnace coke. At the same time, the RINL lost hundreds of crores due to the opening of blast furnaces during the monsoon season when the steel market usually in its low,” Mr. Prasad said.