Amidst the backdrop of growing concerns over the privatization of the Vizag Steel Plant (RINL-VSP), the facility finds itself entangled in mounting electricity dues, further exacerbating its financial woes.

Recent reports indicate that the plant's outstanding electricity bill has surged to a staggering ₹136 crore over just two months.

According to sources within the RINL-Visakhapatnam Steel Plant, the facility, grappling with challenges in procuring coal for power generation since the privatization announcement, has witnessed a significant drop in its power generation capacity.

This decline has compelled the plant to increasingly rely on external power sources, particularly the Andhra Pradesh Eastern Power Distribution Company Limited (APEPDCL).

Previously, the plant maintained its own power generation infrastructure, occasionally diverting surplus power to government utilities for public use. However, the dynamics shifted drastically following the privatization proposal in January 2021.

Subsequently, the output from the plant's captive power facility dwindled, leading to heightened dependence on external sources.

Figures from RINL-VSP sources indicate a decline in power production from the captive facility, with only a fraction of the installed capacity being utilized in recent months. Consequently, the plant has been sourcing an average of 155 MW of electricity per month from APEPDCL to sustain its steel production operations.

J. Ayodhyaram, a prominent union leader at RINL-VSP, attributes the power generation challenges to the privatization uncertainties, lamenting the plant's diminished autonomy in energy procurement. He emphasizes the need for governmental support to mitigate the adverse impact on the steel plant's operations.

Meanwhile, APEPDCL officials reveal that despite issuing bills amounting to ₹94.56 crore for February 2024 and ₹96.97 crore for January 2024, the steel plant has only remitted a fraction of the dues.

With only ₹55 crore paid thus far, including a recent payment of ₹5 crore, a substantial outstanding balance of ₹136.53 crore remains unresolved, posing a considerable financial strain on both the plant and the power distributor.

As the standoff between the workforce, management, and governmental authorities continues, the mounting electricity dues underscore the precarious financial situation confronting the Vizag Steel Plant amidst the broader debate surrounding its privatization.

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