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Vizag Steel Plant Turns Profitable with Rs 54 Crore in Jan 2026

The Visakhapatnam Steel Plant, under RINL, has returned to profitability, reporting a Rs 54 crore profit in January 2026. This turnaround is attributed to strong support from both the Central and Andhra Pradesh state governments, including significant financial assistance and help with utilities. The plant's daily hot metal production has more than doubled, reaching 19,401 tonnes, with capacity utilisation hitting a record 94%. Chief Minister N. Chandrababu Naidu has directed officials to implement new policies to build on this success and further strengthen the public sector enterprise.

Key Points: Vizag Steel Plant Back to Profitability, Hits 94% Capacity

  • Rs 54 crore profit in Jan 2026
  • 94% production capacity utilisation
  • Rs 11,440 crore Central govt assistance
  • All three blast furnaces now operational
2 min read

Visakhapatnam Steel Plant back on path of profitability, says CMD

Visakhapatnam Steel Plant earns Rs 54 crore profit in Jan 2026, achieving 94% capacity utilisation with support from Central and Andhra Pradesh governments.

"The plant has overcome its past losses and is currently producing 19,401 tonnes of hot metal per day. - Plant CMD"

Amaravati, Feb 4

Public sector enterprise Visakhapatnam Steel Plant is back on the path to profitability with the support of the Central and Andhra Pradesh governments, officials informed Chief Minister N. Chandrababu Naidu on Tuesday.

Rashtriya Ispat Nigam Limited (RINL), the corporate entity of Visakhapatnam Steel Plant, claimed to have achieved unprecedented progress in a year-and-a-half, earning a profit of Rs 54 crore in January 2026.

The Chief Minister held a review meeting on the progress of Visakhapatnam Steel Plant at the Secretariat on Tuesday.

Union Steel Ministry Secretary Sandeep Poundrik, Vizag Steel Plant CMD Manish Raj Gupta, Chief Secretary K. Vijayanand, and other senior state government officials attended the review.

The plant's CMD explained to the Chief Minister that with the continuous support from the Central and state governments, the plant has overcome its past losses and is currently producing 19,401 tonnes of hot metal per day.

He stated that in the second quarter of 2024-25, they were able to produce only 9,215 tonnes per day.

Officials informed the Chief Minister that production has increased significantly as all three blast furnaces are now fully operational. They stated that the steel plant's capacity utilisation has reached a record high of 94 per cent. They added that last year, they were able to operate at only 45 per cent of their production capacity.

It was explained that with the support provided by the state government in various areas such as taxes, electricity dues, and water supply, the Visakhapatnam Steel Plant has moved from a phase of financial losses to profitability.

They stated that with the Rs 11,440 crore assistance provided by the Central government, the steel plant has stabilised and is achieving good results. It was also revealed that RINL's credit rating has improved.

Responding to this, the Chief Minister instructed the officials to introduce new policies in all departments to further strengthen the steel plant. He said that this success was possible only with the cooperation of the workers, employees, officials, and the Central and state governments.

- IANS

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Reader Comments

P
Priya S
From 45% to 94% capacity utilisation in a year? That's a remarkable turnaround. Kudos to the workers and management. Hope this profitability is sustainable and leads to more job creation in the region.
R
Rahul R
While the progress is good, a profit of Rs 54 crore in a month for a plant of this scale after an infusion of ₹11,440 crore needs context. Hope this is the start of a real recovery and not just a temporary blip. Long-term viability is key.
A
Aman W
My father worked at RINL for 30 years. Seeing it struggle was painful for the entire Vizag community. This news brings hope. The government support on taxes and power dues seems to have made a real difference. More power to our PSUs!
M
Michael C
Interesting case study in public sector turnaround. Improving credit rating is a positive signal for investors. Hope the new policies focus on modernisation and staying competitive globally.
N
Nisha Z
Good step. But let's not forget the past mismanagement that led to such huge losses. Accountability is important alongside celebration. Hope the plant continues on this path and repays the faith (and funds) of the taxpayers.

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