SteelPlant – Compensation Demand Grows After Fatal Visakhapatnam Accident
SteelPlant – A renewed debate over worker safety and compensation has emerged following the deadly accident at the Visakhapatnam Steel Plant, where eight employees lost their lives and several others sustained injuries after molten steel reportedly spilled from a production unit. Political leaders and government representatives have since responded with demands for relief measures and a detailed investigation into the tragedy.

Call for Enhanced Compensation
Former Andhra Pradesh Chief Minister and YSR Congress Party president YS Jagan Mohan Reddy has urged authorities to provide a compensation package of Rs 1 crore to the families of each deceased worker. In addition to financial assistance, he also called for employment opportunities for eligible family members affected by the incident.
Addressing reporters on Wednesday, Reddy stated that the proposed compensation should be granted over and above any existing benefits already due to the families. He stressed that the victims’ relatives deserve substantial support in light of the devastating loss suffered in the accident.
Opposition to Privatisation
Reddy also revisited the long-standing debate surrounding the future of the Visakhapatnam Steel Plant. He said that during the tenure of the YSRCP government, several communications were sent to Prime Minister Narendra Modi opposing privatisation plans and recommending measures aimed at improving the plant’s financial performance.
According to him, the Andhra Pradesh Legislative Assembly should adopt a formal resolution rejecting any move toward privatisation. He maintained that efforts should focus on strengthening the plant’s operations and ensuring its long-term sustainability.
Criticism of Workforce Policies
The YSRCP leader criticized the current state government, alleging that employee welfare has been neglected in recent years. He claimed that the workforce at the steel plant has reduced significantly, with thousands of workers leaving through retirement, voluntary retirement schemes, or workforce reduction measures.
Reddy further alleged that several employee benefits have been scaled back, including healthcare facilities, travel allowances, housing-related support, and bonuses. He argued that rising costs and reduced benefits have affected the quality of life of employees and reiterated his demand for additional financial relief for the families impacted by the accident.
Government Announces Investigation
Meanwhile, Andhra Pradesh Minister Nara Lokesh said that the Union Ministry of Heavy Industries and Public Enterprises acted swiftly following the incident. He informed reporters that Union Minister HD Kumaraswamy had ordered the formation of an expert panel to examine the circumstances leading to the accident.
Lokesh noted that authorities are still working to determine the exact cause of the mishap. He said officials from the district administration, police department, state government, and public representatives visited the site soon after the incident. Kumaraswamy also reached Visakhapatnam within hours to oversee the response and review the situation.
Revival Efforts Under Spotlight
The minister highlighted that the Visakhapatnam Steel Plant has been receiving significant support as part of efforts to restore its operational strength. He referred to the Rs 15,000 crore financial assistance package announced for the plant’s revival and said the accident occurred during a crucial phase of those recovery efforts.
Lokesh described the steel plant as an important industrial institution and expressed hope that the findings of the investigation would help identify the factors behind the tragedy and improve workplace safety standards.
Support for Bereaved Families
Following the accident, Lokesh visited King George Hospital in Visakhapatnam, where several affected families had gathered. He met relatives of the deceased workers and offered condolences on behalf of the government.
In a related development, Andhra Pradesh Minister of State Bhupathiraju Srinivasa Varma confirmed that a three-member expert committee has been constituted to conduct a detailed inquiry. The panel has been tasked with identifying the reasons behind the accident and recommending preventive measures to avoid similar incidents in the future.