Union blames Centre for coal shortage at Vizag steel plant

The Centre of Indian Trade Unions (CITU) has demanded that the Union government ensure coal supply to the Visakhapatnam Steel Plant (VSP) from the mines on a par with other steel majors in the country. A protest was staged at Visakhapatnam by steel workers under the aegis of the CITU, demanding the intervention of Andhra Pradesh Chief Minister Y S Jagan Mohan Reddy to exert pressure on the Centre in this regard. Addressing the gathering, CITU leaders said that the shortage of coal would hit production at the VSP. The Centre, was supplying coal to other steel majors like Tata Steel, JSW Steel, Jindal and Ispat Industries Ltd, but was denying the same to the VSP, thereby pushing it into losses. Importing of coal from Australia was costing VSP Rs 120 billion a year, they said. They alleged that a blast furnace was closed due to shortage of coal and production capacity was reduced by 30%. They expressed the fear that one more blast furnace would have to be closed if coal supply was not resumed. They also demanded that the YSR Congress government not limit itself to issuing of statements on protection of the VSP but should exert pressure on the Centre. See also: Fitch forecasts strong demand for steel, cementTata Steel to increase NINL operation to 1.1 million tonne in a year