Archive · 18 Nov 2025
AP Govt Clarifies: No VSP Privatisation, Salary Linked to Production
The Andhra Pradesh government said it won't privatize the Visakhapatnam Steel Plant.
They gave it lots of money to help it work better.
But some workers are upset because they might not get paid fully if the plant doesn't make enough steel.
The workers think this is unfair because they can't control everything that affects how much steel they can make.
Andhra Pradesh government clarifies Visakhapatnam Steel Plant (VSP) won't be privatised
Salary payment linked to production targets, triggering employee unrest
State and Centre provided Rs 15,000 crore financial assistance, increasing capacity utilisation from 48% to 79%
Trade unions object to new salary policy, call for protest
Unions argue unrealistic production targets penalise workers for issues beyond their control
- Who
- Andhra Pradesh government, Visakhapatnam Steel Plant employees
- What
- Clarified VSP won't be privatised, salary linked to production targets
- When
- Monday
- Where
- Visakhapatnam Steel Plant, Amaravati
- Why
- To address employee unrest and clarify the government's stance on VSP's future
Government's Stance
Trade Unions' View
Salary Payment
Government's Stance
Salary linked to production targets to incentivise employees
Trade Unions' View
Unfairly penalises workers for issues beyond their control
- Financial Assistance
- Rs 15,000 crore
- Capacity Utilisation Increase
- From 48% to 79%
- Production Target Link
- Full salaries linked to 100% production target
- Union Response
- Called for protest, demanded wage protection
- Plant's Status
- Remains in public sector, moving towards operational revival
