Centre supported VSP more than expected, says Nirmala Sitharaman

Union Finance Minister Nirmala Sitharaman pledges support for Visakhapatnam Steel Plant and other projects in Andhra Pradesh.

Union Finance Minister Nirmala Sitharaman has said the Centre has extended more support than what was expected by the trade unions associated with the Visakhapatnam Steel Plant (VSP), adding that the Union government was committed to supporting all the projects that are linked with the Centre.

Ms. Sitharaman addressed the media on the Budget 2025-26 in Visakhapatnam on Thursday (March 6, 2025) after an interaction with various stakeholders. When her attention was drawn to the demand of VSP unions to announce a tax holiday for a year, Ms. Sitharaman, while referring to the package announced for the VSP, said the Centre has already done more than expected. However, she said that the demands would be looked into.

Referring to the allocations made to the State, Ms. Sitharaman said ₹11,000 crore was allocated for the revival of the VSP. “The VSP should now enhance its capacity by making three furnaces functional. Only one of the three furnaces is functioning while the second one was used for a brief period. The third one was never used,’’ she said.

The Union Finance Minister said that the Centre would support the State government in availing of loans from the World Bank and Asian Development Bank (ADB) for the capital city project in Amaravati.

“Whenever the Chief Minister (N. Chandrababu Naidu) approached us we extended our support,” she said.

When Mr. Sitharaman’s attention was drawn to Polavaram project and the escalating project cost due to the delay in construction, she said the Centre would raise technical issues while releasing funds. “We, however, are committed to completing the project,’’ she added.