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Visakhapatnam Steel Plant Returns to Profitability After Sustained Government Support

Visakhapatnam Steel Plant returns to profitability

VIZAG. Public sector enterprise Visakhapatnam Steel Plant has returned to the path of profitability with sustained support from the Central and Andhra Pradesh governments, officials informed Chief Minister N. Chandrababu Naidu on Tuesday. Rashtriya Ispat Nigam Limited (RINL), the corporate entity of the plant, recorded a turnaround over the past year and a half and posted a profit of Rs 54 crore in January 2026. The Chief Minister reviewed the plant’s progress at a meeting held at the Secretariat, attended by Union Steel Ministry Secretary Sandeep Poundrik, RINL Chairman and Managing Director Manish Raj Gupta, Chief Secretary K. Vijayanand, and other senior officials.

During the meeting, the CMD said continuous support from both governments had helped the plant overcome earlier losses. Hot metal production has increased to 19,401 tonnes per day from 9,215 tonnes per day in the second quarter of 2024–25, with all three blast furnaces now fully operational. Capacity utilisation has reached a record 94 per cent, up from around 45 per cent last year. Officials said state support in taxes, electricity dues, and water supply, along with Rs 11,440 crore assistance from the Centre, played a crucial role in stabilising operations and improving performance, leading to an improved credit rating. The Chief Minister attributed the turnaround to collective efforts of workers and officials and directed departments to introduce new policies to further strengthen the steel plant.

 

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