Visakhapatnam, June 10: YSR Congress Party President and former Andhra Pradesh Chief Minister Y.S. Jagan Mohan Reddy has demanded an additional ex-gratia of ₹1 crore and employment for a family member of each worker who died in the recent accident at the Visakhapatnam Steel Plant (VSP). He also urged the Andhra Pradesh government to pass a resolution in the Assembly opposing the privatization of the steel plant.
Speaking to the media after visiting and consoling injured workers undergoing treatment in hospital, Jagan said the compensation package of ₹1.72 crore being highlighted by the government largely consists of insurance benefits and other statutory dues that are already payable to the victims’ families.
“The government should provide an additional ₹1 crore ex-gratia over and above the existing package and ensure employment for the next of kin of every deceased worker,” he said.
The tragic incident, caused by a liquid metal blast inside the plant, claimed nine lives while five others sustained injuries. One of the injured workers remains in critical condition with severe burn injuries.
Jagan said the workers were not responsible for the accident and that the government should respond with compassion. Citing the compensation provided during the LG Polymers gas leak incident, he urged the state government to extend similar support to the affected families.
He also sought compensation and employment benefits for the family of Pentiah, a regular employee who died in a similar incident in April 2025. According to Jagan, assurances were made to the family, but they are yet to receive the promised support.
Turning to the future of the steel plant, Jagan criticized the government’s handling of VSP and reiterated his opposition to privatization. He called upon the coalition government to adopt an Assembly resolution against privatization, similar to the resolution passed during the YSRCP government’s tenure.
Jagan said the previous YSRCP government had repeatedly written to the Centre opposing privatization and proposing measures to revive and strengthen the plant.
Questioning the government’s claims regarding the ₹11,440 crore package announced for VSP, he argued that the funds are largely intended for debt clearance, voluntary retirement schemes (VRS), and financial restructuring rather than improving worker welfare or plant safety.
He further alleged that employee welfare has suffered significantly in recent years, with the workforce shrinking from around 28,000 employees to nearly 16,000. According to him, thousands of workers have exited through retrenchment, retirement, or VRS, while several employee benefits, including medical facilities, housing allowances, leave travel allowances, and bonuses, have been reduced.
Jagan also claimed that electricity charges in employee quarters had increased substantially, adding to the financial burden on workers.
Stating that the standard of living of VSP employees has deteriorated, he urged the government to immediately provide additional compensation and address workers’ concerns. He said the YSRCP would continue to raise the issue and seek justice for the affected families.
Earlier in the day, Jagan visited the injured workers in hospital, interacted with their families, and assured them of support.