Vizag Steel Returns to Profit Path with Strong Government Support
The CMD said the plant was currently producing 19,401 tonnes of hot metal per day, a sharp rise compared to the 9,215 tonnes recorded during the second quarter of 2024–25.
Vijayawada: Chief Minister N. Chandrababu Naidu on Tuesday reviewed the progress of the Visakhapatnam Steel Plant and expressed satisfaction over its “dramatic turnaround from losses to profits” within a short span.
This, he said, was achieved through coordinated efforts of the central and state governments.
Rashtriya Ispat Nigam Ltd, which had been grappling with losses in the past, posted a profit of Rs.54 crore in January 2026, the meeting held at the secretariat was told.
The review was attended by Union steel secretary Sandeep Poundrik, VSP chairman and MD Manish Raj Gupta, chief secretary K. Vijayanand, and senior officials from both the central and state governments.
The CMD said the plant was currently producing 19,401 tonnes of hot metal per day, a sharp rise compared to the 9,215 tonnes recorded during the second quarter of 2024–25.
Officials attributed the surge in production to the full operation of all three blast furnaces.
The capacity utilisation of the steel plant has touched a record 94 per cent, reflecting a dramatic improvement from the mere 45 per cent utilisation recorded last year. This operational efficiency, combined with timely policy and financial support, has helped the plant emerge from financial distress and move firmly into a profit-making phase.
Officials said the state government’s support in key areas such as tax relief, clearance of electricity dues and water supply assistance played a crucial role in stabilising the plant’s finances.
Additionally, the central government’s financial assistance of Rs.11,440 crore has enabled Vizag Steel to sustain operations, modernise processes and achieve positive results.
The CMD also said RINL’s credit rating has improved, signalling renewed confidence among financial institutions and stakeholders in the company’s future prospects.
Naidu urged the officials to introduce innovative policies across all departments. He emphasized that the success was the result of coordinated efforts by workers, employees, officers, and the unwavering support extended by the central and state governments.
