Visakhapatnam:* The Vizag Steel Plant (VSP) is in the midst of a severe operational and financial crisis, leaving its employees without their April salaries even as May progresses.

The plant's production has been significantly hampered by a critical shortage of coal and other essential materials, exacerbated by a prolonged strike at Gangavaram Port, which has disrupted supply chains.

Compounding the plant's woes is a significant cash flow problem, particularly in covering essential expenses such as electricity.

The plant owes approximately Rs. 68 crore for March and an additional Rs. 70 crore for April to the Eastern Power Distribution Limited Corporation (EPDCL), which has issued notices regarding the overdue payments.

This unprecedented salary delay affects around 30,000 employees, including permanent, contract, and outsourced workers. "This is the first time in the plant's history that salaries have been delayed for such an extended period," remarked CITU union leader K Ayodhya Ram.

He highlighted that, according to regulations, salaries should be disbursed within the first week of the month. 

Ram criticized the plant's management for prioritizing payments of GST, power bills, and other operational expenses over employee salaries.

He pointed out that only one of the plant’s three blast furnaces is currently operational, producing between 4,000 to 5,000 tonnes of steel.

Out of six rolling mills, four are completely shut down, and one operates sporadically, leaving just one mill running at full capacity.

The strike at Gangavaram Port has left three lakh tonnes of material stranded, including 2.19 lakh tonnes of coal and 60,000 tonnes of limestone.

Recently, the plant received a shipment of 75,000 tonnes of coal via Visakhapatnam Port and an additional 75,000 tonnes from SAIL, which will suffice for the next 15 days.

Workers' unions are urgently calling on the government to intervene and implement alternative measures to safeguard the plant and its workforce.

The unions stress that immediate action is essential to restore normal operations and ensure employees receive their overdue salaries.

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