A tense atmosphere gripped the Visakhapatnam Steel Plant on the morning of 28 September after the management reportedly revoked the gate passes of more than 4,000 contract workers. The situation escalated when the workers staged a protest at the plant’s entrance, leading to their eventual admission into the facility. The plant management allegedly confirmed the downsizing, citing the plant’s potential merger with the Steel Authority of India Limited (SAIL).
However, trade unions have called for an official statement from the Union Minister of Steel to clarify any merger plans. Dismissing the merger rumors as false propaganda, union leaders believe the central government is intent on shutting down the plant and that the cancellation of contract workers' gate passes is part of this plan.
Additionally, there is a proposal to transfer 500 employees to NMDC's Nagarnar plant in Chhattisgarh, starting with the selection of 100 executives through walk-in interviews.
Reports suggest the central government is seriously considering merging the struggling Visakhapatnam Steel Plant with SAIL to ensure its survival. The plant has been facing a severe crisis, having shut down two out of its three blast furnaces. Various organisations and trade unions have been urging the state government to take up the issue with the central authorities.
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