Package For Vizag Steel Plant

In huge relief to Vizag Steel Plant, the Center announced Rs 11,440 crore package. The Plant was facing severe financial crisis and this decision comes as a breather.

The same was announced by union railways minister Ashwini Vaishnaw officially. A decision to this end was taken by Prime Minister Modi during his meeting with cabinet committee on finance affairs.

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AP CM Chandrababu has been striving for funds ever since he came to power in 2024. He expressed his opinion on various platforms. Babu met up with the Prime Minister, finance minister Nirmala Seetaraman and union steel minister HD Kumaraswamy regarding the issue.

PM and his team studied the issue from various angles and released the funds finally.

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Vizag Steel Plant has an annual capacity of producing 7.3 million tonnes of steel. Due to working capital loans, it saw heavy losses that led to a crisis situation.

After minister Kumaraswamy’s visit and review of the Plant, the NDA government released Rs 500 crore for GST and Rs 1150 crore for bank loans taken for raw materials.

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At the time, it was estimated that Rs 18,000 crores would bail out the Plant.

Several issues like bank loans taken for raw materials, not having sufficient base materials, court attachments, insolvency issues plagued Vizag Steel Plant till now.

After the committee appointed to look into the matter submitted its report, the central government finally took the decision to release the package.




Union Minister Rammohan Naidu expressed his happiness over the package and profoundly thanked the Center. The package will help the Plant to come out of losses and make profits, he said. The move showed NDA government’s commitment to AP’s development and its people’s aspirations, the minister said.