SAIL Rejects VSP Merger, Emphasizes Debt-Free Future

Union Minister B Srinivasa Varma announced that the merger of Visakhapatnam Steel Plant with Steel Authority of India won't occur. SAIL officials have declined due to VSP's debt. The government approved Rs 11,440 crore to support VSP and future packages were promised to strengthen the plant.

The prospect of merging the Visakhapatnam Steel Plant (VSP) with the Steel Authority of India Limited (SAIL) will not come to fruition, Union Minister of State for Steel, B Srinivasa Varma, confirmed on Thursday.

SAIL's officials objected to the merger, citing the indebtedness of VSP as a concern, according to a release from the BJP. Instead, SAIL prefers taking over either Visakhapatnam Steel Plant or Rashtriya Ispat Nigam Ltd (RINL) once they alleviate their debt burdens.

Srinivasa Varma mentioned plans to initiate production at VSP by January end, targeting full-fledged operations by August. The recent allocation of Rs 11,440 crore by the Centre aims to prevent VSP's privatization and appease regional sentiments, with promises of further financial support.

(With inputs from agencies.)