India: Visakhapatnam Steel Plant facing coal, coke supply disruptions amid Gangavaram force majeure

Recently, the Visakhapatnam Steel Plant (VSP) ran into trouble as Gangavaram Port Ltd declared a force majeure. This was because of a strike by workers, which has stopped supply of coal and coke to the steel plant since last week, causing hindrances in production.

Workers at Gangavaram Port are currently on strike, advocating for equitable wages comparable to their counterparts at the Visakhapatnam Port Authority (VPA). In addition to wage parity, they are calling for a comprehensive compensation package of INR 40 lakh for fatalities that occur on duty, as well as allowances for dust, dirt, and night duty.

This situation is really serious because VSP, a key player in India's steel industry, is facing a challenge in continuing its daily operations because of the disruption in the supply of coke and coal. One big hindrance is that it cannot use its coke ovens, which are important for making gases needed for production. Because there is no coal and coke available crude steel output has dropped considerably.

VSP holds a crucial position in the steel industry with a capacity of 7.2 million tonnes of production. It is among the top importers of coking coal, bringing in about 4 mnt annually through Gangavaram Port. The disruption in the supply chain is not just affecting the steel plant but also the steel market.

In response to this serious situation, all unions connected to VSP are urgently calling for intervention from relevant authorities. Taking immediate action is essential to tackle the crisis and get VSP's production back on track. Resolving this issue promptly is not only vital for the plant's operations but also for maintaining stability in the regional steel industry.

It is expected that quick actions will be taken to tackle the issues highlighted by the unions and get the supply of coal and coke back on track, and restore smooth functioning of VSP as well as the manufacturing network in the region.