Indirect Privatisation Haunting Vizag Steel Plant?

Notwithstanding repeated claims by Telugu Desam Party and Bharatiya Janata Party leaders that there is no question of privatising the Visakhapatnam Steel Plant, the latest… Notwithstanding repeated claims by Telugu Desam Party and Bharatiya Janata Party leaders that there is no question of privatising the Visakhapatnam Steel Plant, the latest developments have raised suspicions that the steel plant management is indirectly involving private parties, leading to gradual privatisation. The latest decision by the steel plant management to invite private participation under the Total Operation and Maintenance Contract (TOMC) system within the plant has triggered apprehensions among workers and trade unions. The development comes at a time when optimism had begun to grow over the future of the Visakhapatnam Steel Plant following the financial support package announced by the Central government. Production levels at the plant have reportedly improved in recent months, while workers have been striving to meet operational targets amid expectations that the plant could gradually recover from its prolonged financial crisis. However, labour groups now allege that the plant management is quietly accelerating the implementation of the TOMC system, a move they claim could result in large sections of the steel plant being handed over to major private contracting companies. According to workers’ representatives, the TOMC model goes beyond the earlier Total Maintenance Contract (TMC) system that existed in some departments. Under the proposed framework, both operational and maintenance responsibilities of key plant divisions could be outsourced to private firms. Employees fear that such a system would significantly reduce opportunities for fresh recruitment and eventually lead to the removal of both permanent and contract workers. Trade union leaders claim that specific clauses included in the proposed tender conditions have intensified anxiety among workers, as they allegedly permit restructuring that could displace the existing workforce. Workers have questioned how long they would be forced to continue without job security or labour rights. The issue has also triggered criticism against the ruling TDP-led coalition government in Andhra Pradesh, with labour representatives accusing the state administration of remaining silent despite growing unrest among steel plant employees. As part of the ongoing process, the steel plant management has reportedly invited Expressions of Interest (EOIs) for several divisions. Labour sources claim that the Sinter Plant contract has already been secured by Tata Steel, while details regarding other companies participating in the process have not yet been publicly disclosed by the management. Workers further allege that several critical divisions — including the Coke Oven, RMHP, Power Plant, Sinter Plant and Blast Furnaces — are already suffering from inadequate maintenance and poor rust clearance, adversely affecting production efficiency and operational capacity. The financial distress at the plant also remains severe. According to labour representatives, salary-related dues amounting to nearly Rs 860 crore are still pending for employees. Trade unions argue that the earlier TMC system included provisions secured through labour negotiations, under which 50 percent of recruitment opportunities were reserved for the families of permanent workers and another 50 percent for displaced local residents. They