Archive · 22 Jan 2026
VUPPC seeks RINL-SAIL merger for VSP revival
The Visakha Ukku Parirakshana Porata Committee (VUPPC) is asking for the Visakhapatnam Steel Plant (VSP) to be merged with SAIL.
They say VSP has been losing money because of problems like not getting enough raw materials and having to pay high prices for coal.
Even though VSP has made a lot of money for the government in the past, recent decisions have made things worse.
The committee wants the government to help fix these problems and make VSP strong again.
They think merging with SAIL is the best way to do this.
VUPPC demands merger of RINL (VSP's corporate entity) with SAIL to revive the plant.
VSP has incurred significant losses post-2021 disinvestment announcement.
Financial losses attributed to raw material shortages, high coal prices, and inadequate working capital.
VSP employees face wage disparities and operational challenges compared to SAIL employees.
Committee requests government intervention to safeguard VSP's future and align with India's steel production targets.
- Who
- Visakha Ukku Parirakshana Porata Committee (VUPPC) and Rashtriya Ispat Nigam Limited (RINL) employees
- What
- Demand for merger of RINL with SAIL to revive Visakhapatnam Steel Plant (VSP)
- When
- Current financial issues and losses occurred post-2021 disinvestment announcement
- Where
- Visakhapatnam Steel Plant (VSP) in Andhra Pradesh, India
- Why
- To address financial losses, operational issues, and safeguard the future of VSP
- Revival Package
- Rs.11,440 crore (Central) + Rs.2,600 crore (Andhra Pradesh)
- VSP Contributions
- Over Rs.58,000 crore in dividends and taxes
- VSP Profit (2021)
- Rs.921 crore
- VSP Losses (2022-25)
- Rs.2,859 crore, Rs.4,849 crore, Rs.1,389 crore
- Wage Agreements
- VSP employees under 2007 and 2012 agreements, SAIL revisions not extended
- Proposed Solution
- Merger of RINL with SAIL
- India's Steel Target
- 300 million tonnes by 2030