Centre Plans Rs 8097 Crore Second Package for Vizag Steel Plant to Boost Recovery

• Vizag Steel Plant to get Rs 8097 crore second package
• Centre financial support boosts Vizag Steel Plant recovery
• Vizag Steel Plant production and sales show strong growth

In a significant relief for the struggling steel sector, the Centre is preparing to extend a second financial package of Rs 8097 crore to strengthen the Visakhapatnam Steel Plant, which has recently shown signs of recovery.

The proposal has already moved forward at the ministry level, with Union Steel Minister H D Kumaraswamy clearing the file. The plan is now awaiting final approval from the finance department before being placed before the Union Cabinet for a formal decision.

Officials indicated that the fresh funding will be provided in the form of equity, similar to the earlier package, ensuring that the plant does not face additional debt pressure while strengthening its capital base. This approach is expected to help the plant sustain its turnaround and move towards long term profitability.

Earlier, the Centre had extended a financial package of Rs 11440 crore, which included a major equity component along with working capital support. That assistance played a crucial role in stabilizing operations and reviving production levels at the plant.

The improvement in performance has been visible in recent months, with all three blast furnaces becoming operational. This has led to a noticeable increase in both steel production and sales, offering a positive outlook for the future.

The latest move is seen as part of a broader effort to ensure that the Visakhapatnam Steel Plant continues on a stable growth path. Officials believe that sustained financial support will help the facility fully recover and contribute more significantly to the industrial output of the region.