Background: The Roots of the Protest
The controversy surrounding the Visakhapatnam Steel Plant (VSP) began in 2021, when the government announced its strategic sale under the privatization agenda. This move was part of the government’s broader plan to reduce public sector undertakings and improve fiscal health. However, the announcement was met with fierce opposition from workers, unions, and local leaders, who saw it as a threat to the future of the plant and its employees. The Visakha Ukku Parirakshana Porata Committee, a coalition of various workers' unions and local political leaders, spearheaded the protests, arguing that privatization would lead to job losses, reduced benefits, and the eventual demise of the region's industrial backbone.
The Candlelight Rally: Marking the 1,500th Day
On March 22, 2025, the protestors commemorated 1,500 days of resistance by organizing a candlelight rally from Kurmannapalem to Vadlapudi Junction in Visakhapatnam. The rally symbolized their unwavering commitment to halting the privatization of the plant and raising awareness about their ongoing struggle. In the coming days, the protestors also planned a second rally, scheduled for March 23, 2025, stretching from Old Gajuwaka to Kurmannapalem. These peaceful demonstrations have become a hallmark of the movement, drawing attention from the public and the media.
The Government’s Response: Accusations of Deliberate Stalling
Despite the ongoing protests, the government has maintained that privatization is necessary for the plant’s revival and long-term sustainability. Union leaders, however, accuse the government of taking slow and calculated steps to privatize the steel plant. According to V. Srinivasa Rao, one of the prominent leaders of the protest, the voluntary retirement schemes (VRS) offered to employees and other moves, like the revival package, are only tactics to weaken the plant and make it more vulnerable to privatization.
The protestors argue that each step taken by the government, whether it’s the announcement of the revival package or the VRS offers, signals a deeper agenda to privatize the plant. The protestors insist that these moves do not offer a real solution to the plant’s problems and are only designed to dismantle the public sector unit.
Key Demands of the Protestors
The core demands of the protestors remain unchanged since the beginning of the movement. These include:
• Merger with Steel Authority of India Limited (SAIL): The protestors demand that Visakhapatnam Steel Plant be merged with SAIL to ensure its survival and long-term viability. They believe that under the stewardship of SAIL, the plant would receive the necessary support to thrive and continue its operations without the threat of privatization.
• Revocation of Privatization Plans: The protestors also want the government to cancel the privatization of the plant entirely. They argue that privatizing the plant would result in job cuts, higher costs for consumers, and loss of control over the country’s industrial assets.
• Appointment of Key Management Positions: Another critical demand is the appointment of a permanent Chairman and Managing Director (CMD) for the plant, as well as the filling of the vacant Director (Finance) position. For months, these positions have been left vacant, leading to a lack of effective leadership and decision-making at the plant.
Unresolved Issues: Employee Concerns and Unpaid Salaries
Despite the government’s announcement of a revival package in an attempt to appease workers, many issues remain unresolved. One of the most pressing concerns among employees is the unpaid salaries. Workers allege that, despite assurances, the government has failed to clear the backlogs of unpaid wages, causing severe financial strain on many employees.
Additionally, employees who opted for the Voluntary Retirement Scheme (VRS) have been left in a state of uncertainty. No final solutions have been offered to these employees, and many feel abandoned by both the state and central governments. This has intensified the discontent among the plant’s workforce, leading to further demonstrations and protests.
Management Vacancies and Administrative Concerns
The protest leaders have also raised concerns about the management and administrative challenges at the plant. Over the past six months, the post of Chairman and Managing Director (CMD) has remained vacant, and the plant’s operations have been severely affected by the absence of a permanent leader. Moreover, the plant’s finance department has been left in limbo, with no Director (Finance) appointed despite over 10 candidates being interviewed for the position. These administrative voids have compounded the difficulties faced by the workers and further fueled the protests.
Human Chain and Rallies: Symbol of Unity and Defiance
In addition to the candlelight rallies, the protestors organized a human chain stretching from Kurmannapalem to Vadlapudi Junction, symbolizing their solidarity and collective strength. The human chain was a visual representation of their unified stand against privatization and their demand for the protection of the steel plant’s future.
These demonstrations have garnered widespread support from the local community, political leaders, and other unions, amplifying the message of resistance. The protests have not only become a local issue but also a national symbol of workers' rights and resistance against privatization.
Key Takeaways:
• The Visakha Ukku Parirakshana Porata Committee marked the 1,500th day of its protest against the privatization of the Visakhapatnam Steel Plant on March 22, 2025.
• The main demands include the merger of VSP with Steel Authority of India Limited (SAIL) and the revocation of the privatization decision.
• Protestors accuse the government of deliberately taking slow steps to privatize the plant and abandon workers under the guise of a revival package.
• There has been no permanent appointment for the position of Chairman and Managing Director (CMD) at the plant for the past six months.
• The position of Director (Finance) at RINL-VSP has remained vacant despite interviews, further weakening the plant’s management.
• Employees continue to face unresolved issues, including unpaid salaries and lack of solutions for those who opted for Voluntary Retirement Scheme (VRS).
• Protests have included rallies, candlelight vigils, and human chains, with widespread local and political support for the movement.
