The chief minister of the Indian state of Karnataka, B S Yediyurappa, has urged Union steel and petroleum minister Dharmendra Pradhan to initiate the steps to revive Sail’s Visvesvaraya Iron and Steel Plant (VISL) at Bhadravathi, in the Shivamogga district of Karnataka.
Yediyurappa has proposed that the steel ministry invest to modernise and revamp plant capacity, VISL is the only producer with at least 730 special grades of steel and maintains capacity through its own captive mines.
That apart, workforce and port connectivity are the other factors that can ensure VISL aids India in achieving its targets set, as per National Steel Policy 2017.
Sail acquired the unit in 1989 for Re1 and committed to invest Rs500 crore for repair and renewal, of which Rs157 crore was invested.
Targetted production of 1mn mt annually was subsequently not met and the unit continued to incur losses, attributed to a shortage of iron ore and obsolete machinery.
The losses compelled Sail to invite bids for the unit from the private sector, but did not receive any, till date.
VISL currently has an annual output capacity of 216,000mt of hot metal and 98,280mt of alloy and special steel.