Vizag
Steel Plant grapples with coal shortage, financial crisis, and halted
production due to inaction by authorities and government. Trade union leaders
raise concerns about the impact on tax turnover and dependent industries,
urging immediate resolution.
VISAKHAPATNAM:
Due to a severe shortage of coal, the Vizag Steel
Plant (VSP) coal yards have become empty, as more than two lakh
tonnes of coal were confined to stockyards at Gangavaram Port and other places
outside the plant. Plant workers say that VSP has been facing such conditions
for the first time in the past three and a half decades.
The steel plant is struggling with a financial crisis, and
production has decreased due to a shortage of raw materials.
Coal
has become an essential material for the steel plant. The plant has eight coal
yards extending over 50 acres, bustling with activity round the clock and coal
handling with huge cranes. But now, it has become empty.
The trade union leaders say that the steel plant will have a turnover of more
than Rs. 20,000 crore every year. “It has around 9% taxes on every Rs. 1000
crore. On every Rs. 2000 crore sales in each month, the plant has been paying a
GST of Rs. 360 crore. In a pathetic condition now, all coal yards have become
empty, and no authority has been extending full support to the steel plant,”
union leaders alleged.
Even after 20 days of the workers' strike at Gangavaram Port, authorities are
yet to find a solution, resulting in no handling of coal or other raw materials
to the steel plant, which has nothing but a wall between Gangavaram Port and
the plant.
The
Steel Plant AITUC leader, K Adinarayana, alleged that the authorities and the
central government have been conspiring to shut down the plant by creating a
shortage of coal for production.
The recognized union CITU secretary, Ayodya Ram, said that neither the central
government nor the state government is taking the initiative in shifting the
coal from Gangavaram Port. He said this condition would bring financial crises
not only to the plant but also to the industries dependent on the plant. He
urged the government to bring a solution to the present crisis.