A Tale Of Two Major Steel Plants With Contrasting Stories

Visakhapatnam: It's a tale of two major steel plants with contrasting stories. While one is battling for a hand-to-mouth existence, another, yet to be grounded, is being showered a slew of favours even though it is at a conceptual stage.

This tale of two steel plants in undivided Visakhapatnam district has become a topic of heated discussion in the two Telugu States of Andhra Pradesh and Telangana. Rashtriya Ispat Nigam Limited (RINL), the corporate entity of Visakhapatnam Steel Plant, is a result of a prolonged people's movement under the 'Visakha Ukku Andhrula Hakku' banner claiming the lives of 32 people in police firing in November, 1966. It does not have captive mines gaining the reputation as the only major steel manufacturer in India without owning iron ore and coal mines and coughing up a heavy amount towards sourcing the raw material.

Another steel plant, proposed with a production capacity of 17.8 million tonnes in two phases with an investment of Rs1.35 lakh crore by ArcelorMittal Nippon Steel (AMNS) India at Rajayyapeta in Anakapalli district, about 70 km from here, has been granted permission as well as land at the same place to develop and own a captive port at a recent meeting of State Cabinet chaired by Chief Minister N Chandrababu Naidu.

The captive port's first phase is envisaged with 20.5 million tonnes and an investment of Rs5,816 crore. The steel plant's first phase is proposed with an investment of Rs55,964 crore to produce 7.3 million tonnes by January, 2029. The second phase is envisaged with Rs80,000 crore to produce 20.5 million tonnes by 2033. Incidentally, the site allotted to AMNS was earlier sanctioned for a captive port by Anrak Aluminium Limited (AAL), which set up a refinery near Makavarapalem but could not get clearance for mining of bauxite mines in the tribal areas due to opposition over violation of Samata Judgement given by Supreme Court on July 11, 1997 in the Samta Vs State of Andhra Pradesh and others. The Samata Judgement pertains to rights of tribals over the minerals in the scheduled areas as per the Regulation 1/70 of Land Transfer (Prohibition) Act.

Ironically, RINL popularly known as Vizag Steel, had plans to develop a captive port at Gangavaram on its own land to handle raw material imports and exports and save an estimated Rs1,000 crore per annum towards logistics. When RINL faced fund crunch, the Visakhapatnam Port Authority (then known as Visakhapatnam Port Trust) had come forward to develop it as a satellite port by entering into a joint venture with RINL and the State Government.