6 months ago
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CITU State wide caput Ch. Narasinga Rao connected Monday (December 1) alleged that the absorption of Visakhapatnam Steel Plant (VSP) is resorting to unethical practices to tarnish the marque representation of Vizag Steel by utilizing inferior prime of coke (a coagulated substance made by heating coal) successful the ‘coke oven’ section of VSP.
Addressing a media league here, the CITU person alleged that usage of inferior coke was resulting successful mediocre prime alloy being made, and buyers were rejecting it. He said the coke being imported straight from overseas was of inferior prime and was being sold for commissions. He recalled that the CITU had lodged a ailment with the CBI connected the usage of inferior coke successful the past.
He said that accumulation astatine the Steel Melting Shop (SMS) of the VSP was stopped for 2 days owed to deficiency of limestone from its ain mines. While the alloy works was expected to banal capable earthy materials for 45 days, the existent banal tin hardly past 3 days.
On the gross side, VSP made a nett of ₹74 crore successful April 2025 and ₹52 crore successful May. Profits were made from January to June 2025, by which clip the plant’s 2 blast furnaces had achieved 100% accumulation (15,000 tonnes per day).
In June, however, a 3rd blast furnace began production. This caused losses of ₹121 crore successful July and ₹157 crore successful August. Wondering who was liable for it, helium said the CBI should analyse the matter.
Since June, accumulation successful the blast furnace has fallen to 67% owed to usage of inferior coke. Known for its quality, Vizag Steel was exported for the past 4 years and had won galore awards. This estimation was astatine involvement now.
While earthy materials accounted for 63% of the full accumulation outgo successful 2024, it roseate steeply and stood astatine 75% successful 2025. No alloy works elsewhere successful the satellite has its earthy worldly outgo truthful high. The earthy materials relationship for astir 50% of the full accumulation outgo astatine SAIL, helium said.
