Jagan alleges cut in VSP staff by half, neglect of welfare

Visakhapatnam: YSRCP president Y S Jagan Mohan Reddy demanded a resolution in the Assembly opposing privatisation of Visakhapatnam Steel Plant (VSP) and alleged that the NDA government’s negligence is clear in both safeguarding the plant and protecting its employees.

After consoling the explosion victims of the plant undergoing treatment in the hospitals, Jagan demanded an additional Rs 1 crore ex-gratia for the deceased families. “The government announced about a Rs.1.72 crore compensation package for the victims. However, most part of that amount is the victims’ retirement and other benefits which they were already entitled. The Centre is providing Rs.25 lakh ex-gratia to the deceased families, Rs.2 lakh is announced from the PM Relief Fund, however, the state government’s share is nil,” the former chief minister pointed out.

While the blast incident at VSP claimed nine lives so far and one more person is said to be in a serious condition, Jagan said the government should act on a humanitarian ground and follow the example set by the previous YSRCP government where it gave Rs 1 crore compensation to the victims during the LG Polymers incident.

Recalling the Centre’s revival package for the VSP to the tune of Rs 11,440 crore, Jagan alleged that it is not meant to improve safety parameters or employee welfare but to clear bank dues, reduce staff through VRS scheme and GST payments.

“From over 27,000 employees in 2024, the VSP’s strength has now been reduced to half. Salaries are unpaid for over four months. Also, the employees are not getting any benefits they are entitled to such as medical allowance, incentives and leave encashments,” he lamented, adding that the employees’ situation was far better during the previous government than the present rule.

Jagan recalled how the previous government stood by the VSP employees, made serious efforts to stall privatisation move. He expressed concern that the present coalition government is not bothered about the welfare of the VSP or its employees.

Also, Jagan sought similar benefits for the family of Pentiah, a regular employee, who died last April under similar circumstances. Though the family was assured compensation and a job for a family member, nothing has been done so far.