Plight of VSP widows comes to fore as officers’ association meets Visakhapatnam MP

Mr. Jindal
3 Min Read

In a poignant meeting that laid bare the ‘pathetic’ living conditions of hundreds of bereaved families, the newly elected committee of the Steel Officers’ Association met Visakhapatnam MP M. Sribharat recently, seeking urgent intervention to address what it described as systemic neglect of Visakha Steel Plant employees and their survivors.

The association said the dignity of steel workers and the survival of their families could not be compromised. While the meeting covered a range of industrial demands, the heart wrenching testimonies of widow pensioners dominated the discussion.

The association highlighted a major financial anomaly involving the families of deceased employees. According to General Secretary K. V. D. Prasad and committee member K. Satyanarayana, over ₹200 crore has been collected from the families of around 700 deceased employees. This amount was deposited as notional provident fund and gratuity with Rashtriya Ispat Nigam Limited to enable payment of the last drawn basic pay plus DA as monthly pension till the retirement age of the employee.

Despite these substantial contributions, the percentage based disbursement of widow pensions, similar to employee salaries since September 2024, has been erratic and inadequate, they alleged. Four months of widow pension payments, amounting to less than ₹20 crore, remain unpaid.

Two widow pensioners, Sandhya and Urmila, briefed the MP on their “pathetic” struggle to meet basic needs as their rightful dues were withheld. “We also questioned how our pensions are being linked to production targets,” they told him.

“It is just about ₹4 crore per month for the families of nearly 700 deceased employees, but the plant is not paying even this,” Mr. Prasad told The Hindu on Sunday.

He further alleged that for the past three months, payment of salaries to existing employees has been linked to production metrics, resulting in cuts or delays in salary disbursal.

The association reiterated its demand for the merger of Visakha Steel Plant with Steel Authority of India Limited, which it believes is the only long term solution for the plant’s stability.

The delegation submitted a formal list of grievances, including implementation of promotions based on notional seniority, immediate settlement of pending salary arrears, withdrawal of the production linked wage circular, payment of gratuity on par with Steel Authority of India Limited norms, and a second opportunity for around 1,200 employees whose higher pension demand letters were affected by administrative delays.

Mr. Prasad said Mr. Sribharat expressed serious concern, particularly over the welfare of families of deceased employees. He assured the delegation that he would personally take up the matter with the Union Steel Minister and the Union Labour Minister, and accepted an invitation to visit the SEA Building to continue discussions with the workforce.

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