Heavy Industries and Steel Minister HD Kumaraswamy reviewed the progress of Vizag Steel on July 3, noting that the ministry would work out a plan to infuse funds once the company works towards increasing production and capacity.
Visakhapatnam Steel Plant, or Vizag Steel, is run by the corporate entity Rashtriya Ispat Nigam Limited.
The minister also requested a comprehensive plan to revive the struggling entity.
In his meeting with the board of the public sector enterprise, Kumaraswamy instructed the officials to increase steel production to get out of the financial rut.
India has set a target of producing 300 million tonnes of steel annually.
The minister also pointed to a need to strengthen the domestic steel industry, highlighting the threat from neighbouring country. Emphasis should be placed on the production of speciality steel and green steel, he added.
He noted that Vizag Steel needs to enhance its technical and financial capabilities to meet these challenges.
India’s steel sector has been one of the top performers this year among the core infrastructure industries. Last week's data showed that steel production had expanded 7.6 percent annually in May.
For the first two months, growth was 8.2 percent for the sector.
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