The Hindu : VSP expansion under consideration

Online edition of India's National Newspaper
Sunday, Mar 28, 2004

Andhra Pradesh

Andhra Pradesh

VSP expansion under consideration

By Our Special Correspondent

VISAKHAPATNAM, MARCH 27. The Union Ministry of Steel is considering capacity expansion of the Visakhapatnam Steel Plant (VSP) from the present three million tonnes of liquid steel to five million tonnes. This was told by the Additional Secretary of Steel and Financial Adviser to the Ministry of Steel, S.Y. Quraishi, to a delegation of the Steel Plant Employees Union (SPEU) during the former's visit to the VSP on Saturday, according to the union president, V. Dhanaraju.

The union leader said that the SPEU, affiliated to the CITU, had submitted a memorandum to the visiting dignitary.

The infrastructure available in the steel plant at present was adequate to produce up to 10 million tonnes, the memorandum said.

Other issues mentioned by the union were allocation of captive iron ore mines to VSP to overcome the raw material crisis, construction of the Gangavaram port which would enable the steel plant to save about Rs.200 crores annually on transport, employment of displaced persons and review of wage agreement.

The Visakha Steel Employees Congress (VSEC), the recognised union affiliated to the INTUC, also submitted a memorandum to Dr. Quraishi urging him to take up expansion of the plant, chalk out a plan for it to have its own iron ore mines, setting up of the Gangavaram port, reduction of rates of all types of raw materials, rail freight, electrical charges and water charges, expediting construction of the fourth coke oven battery and extending the necessary budgetary support to the plant by the Centre. Among VSEC's other demands were payment of wage arrears, allocation of surplus land to steel plant employees for housing, employment of displaced persons, new recruitment, promotions and increments to those who acquired Hindi qualification. The VSEC delegation was led by the INTUC district president, Gandham Venkata Rao, and the working president, Y. Masthanappa.

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