Vizag Steel Plant mishap: Jagan demands Rs 1 crore ex-gratia for kin

Published : Jun 11, 2026, 09:01 AM IST
Former Chief Minister and YSRCP President YS Jagan Mohan Reddy (Photo/ANI)

Synopsis

YSRCP chief YS Jagan Mohan Reddy demanded Rs 1 crore ex-gratia and a job for the kin of 8 workers killed in the Visakhapatnam Steel Plant mishap. The government responded by forming an expert committee to probe the incident which happened during revival.

Jagan demands Rs 1 crore ex-gratia, slams govt

Former Chief Minister and YSRCP President YS Jagan Mohan Reddy has demanded an ex-gratia of Rs 1 crore along with a job for the kin of the deceased in the Steel Plant mishap. The incident took place after a large quantity of molten steel reportedly leaked from the SMS-2 and STC-3 heat facility of the Visakhapatnam Steel Plant, resulting in the deaths of eight workers and injuries to several others.

Speaking to reporters on Wednesday, Reddy said, "I demanded an ex-gratia of Rs 1 crore over and above what is due, along with a job for the kin of the deceased in the Steel Plant mishap." He added that the YSRCP government had also written letters to Prime Minister Narendra Modi opposing privatisation and suggesting measures to save the Steel Plant and make it a profitable unit. "The Assembly should pass a resolution opposing the privatisation of VSP...The YSRCP government had also written letters to the Prime Minister opposing privatisation and suggesting measures to save the Steel Plant and make it a profitable unit," he said.

Launching a sharp attack on the coalition government in the state, he asserted that the state government had neglected the staff, and the number of employees had dwindled from 28,000 to 16,000 during Chandrababu Naidu's tenure. "The coalition government has been neglecting the staff, and the number of employees has dwindled from 28,000 to 16,000 during Chandrababu Naidu's tenure. In all, 10,500 employees were shown the door either through retrenchment, VRS, or retirement. The management is coercing employees to opt for VRS and has curtailed several benefits, including medical facilities, HRA, LTA, bonuses, and others. It has also increased electricity charges in the quarters from Rs 0.50 per unit to Rs 8.50 per unit. The standard of living of VSP employees has deteriorated during the past two years, and the government should consider the demand and provide additional compensation of Rs 1 crore. Failing this, YSRCP will take up the issue when it returns to power..." Reddy told reporters.

Govt forms probe committee

Earlier on Tuesday, Andhra Pradesh Minister Nara Lokesh said that the Union Minister of Heavy Industries and Public Enterprises, HD Kumaraswamy, formed an expert committee to review the tragic accident at Visakhapatnam Steel Plant. Speaking to the reporters, Lokesh noted that a special bailout package of Rs 15,000 crore to revive the Visakhapatnam Steel Plant was made. The tragedy occurred when the steel plant was being revived. "Visakhapatnam Steel Plant is a very historical steel plant. Under the leadership of PM Modi and our Chief Minister Chandrababu Naidu, they gave a special bailout package of Rs 15,000 crores to revive the steel plant and get it back on track. When it was being revived, an unfortunate incident happened yesterday. We are yet to understand why it happened. The collector, the commissioner of police, our home minister, member of parliament, member of legislative assembly, MLAs, all came here. Within six hours, Minister Kumaraswamy also reached here. Kumaraswamy has formed an expert committee, which will review everything end-to-end. They will arrive today," he said.

Lokesh met the families of workers who lost their lives in the tragic accident at the Visakhapatnam Steel Plant. The Minister reached King George Hospital (KGH) in Visakhapatnam to console the bereaved families.

Andhra Pradesh MoS Bhupathiraju Srinivasa Varma informed that a three-member expert committee was constituted to probe the incident and recommend measures to prevent such tragedies in the future. (ANI)

(Except for the headline, this story has not been edited by Asianet Newsable English staff and is published from a syndicated feed.)

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