SAIL Ready for Vizag Steel Plant Merger, But Not Immediately: Union Minister Srinivasa Varma

The Central Government recently announced a ₹11,440 crore package for the Visakhapatnam Steel Plant, marking a significant development in the plant's future. While coalition government leaders welcomed the package, several stakeholders argue that merging the Visakhapatnam Steel Plant with the Steel Authority of India Limited (SAIL) and allocating dedicated iron ore mines is the long-term solution. Amid this backdrop, a key clarification has emerged.

Union Minister of State for Steel Bhupatiraju Srinivasa Varma revealed that SAIL has expressed reservations about an immediate merger with the Visakhapatnam Steel Plant. He explained that SAIL has outlined its position, stating that while it has not ruled out the merger entirely, it prefers to address the plant's financial struggles first.

“SAIL has stated that since the Visakhapatnam Steel Plant is currently running at a loss, they need a financial package and management rights to revive the plant. SAIL intends to manage the plant and bring it back to profitability. Only after achieving stability and resolving the losses would they consider proceeding with the merger,” said Srinivasa Varma.

He further emphasized that SAIL’s approach makes it clear that it is open to the merger but not immediately. “It is not true that SAIL has outright refused the merger. They are simply saying it will take time and careful planning,” Srinivasa Varma clarified, dismissing ongoing speculations.

The Minister reiterated that SAIL remains committed to the process and that the merger would proceed once the plant is on a solid financial footing.