Visakhapatnam Steel Plant Records Rs 54 Crore Profit in January 2025
Rashtriya Ispat Nigam Limited (RINL), popularly known as Visakhapatnam Steel Plant, has made a remarkable financial recovery by posting a profit of Rs 54 crore in January 2025. This positive development marks a significant turnaround for the public sector steel major, which had been struggling with losses in recent years.
Government Support Drives Financial Revival
The return to profitability has been facilitated by substantial support from both the central government and the state government of Andhra Pradesh. Officials confirmed that the central government provided assistance worth Rs 11,440 crore to help stabilize the plant's operations. Meanwhile, the state government offered crucial support in critical areas including tax relief, power dues, and water supply arrangements.
Production Capacity Soars to 94 Percent
Operational improvements have been equally impressive. The plant's capacity utilization has surged to 94 percent, a dramatic increase from just 45 percent recorded in the previous year. All three blast furnaces are currently operational, contributing to this enhanced production efficiency.
Performance Review Meeting with Key Officials
Andhra Pradesh Chief Minister N Chandrababu Naidu reviewed the plant's performance during a meeting on Tuesday with Union Ministry of Steel Secretary Sandeep Poundrik. The meeting was attended by RINL Chairman and Managing Director Manish Raj Gupta, Chief Secretary K Vijayanand, and other senior officials from both state and central governments.
Substantial Production Increase Achieved
During the review, the CMD informed Chief Minister Naidu that daily hot metal production has increased substantially to 19,401 tonnes. This represents more than double the production of 9,215 tonnes recorded during the second quarter of the 2024-25 financial year.
Credit Rating Improvement and Future Plans
Following this financial turnaround, RINL's credit rating has shown improvement, reflecting growing confidence in the company's stability. Chief Minister Naidu directed officials to introduce new policies across departments to further strengthen the steel plant's operations. He acknowledged that the improvement was achieved through the cooperative efforts of workers, employees, officials, and both central and state governments.
The Visakhapatnam Steel Plant's return to profitability represents a significant achievement for India's public sector steel industry and demonstrates how coordinated government support can revitalize critical industrial assets.
