• Wednesday, 13th November 2024

Vizag Steel Plant Grapples with Pay Delays Amidst Material Shortages: Coal Supply Resumes



In Visakhapatnam, the Vizag Steel Plant (VSP) is in the midst of a challenging period, as employees await their April salaries amidst a backdrop of material shortages.

Despite half of May already passing, approximately 30,000 permanent, contract, and outsourcing employees are still awaiting payment, marking an unprecedented delay in the plant's history.

Compounding the issue, the plant is grappling with severe shortages of coal and essential materials for production.

A significant quantity of materials is stranded at Gangavaram port due to a month-long strike by port workers, disrupting the procurement of crucial raw materials like coking coal and limestone.

Fortunately, the strike at Gangavaram port ceased recently, enabling the resumption of coal supply via conveyor belt.

However, financial challenges persist, with notices issued by the Eastern Power Distribution Corporation Limited (EPDCL) demanding payment of pending electricity bills amounting to approximately 68 crore for March and 70 crore for April.


K Ayodhya Ram, a CITU leader, voiced concerns over the situation, emphasizing the hardship faced by employees who tirelessly contribute to production.

He highlighted operational challenges within the plant, citing the operation of only one out of three blast furnaces and the intermittent operation of rolling mills.

Moreover, a substantial quantity of essential materials, including coal and limestone, has been stranded at Gangavaram port for a month, exacerbating production woes.

While a shipment of coal from Chennai and additional supply from SAIL is expected to meet immediate needs, the long-term sustainability of production remains uncertain.

When approached for comment, VSP corporate communications head A Sharma expressed optimism, stating that with the resumption of coal supply, production and sales would increase, paving the way for timely salary payments to employees.

He assured that salaries would be disbursed "very soon," providing a glimmer of hope amidst the challenges faced by the steel plant.

 

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