Neglect of Safety Standards Caused Vizag Steel Plant Blast: Jagan
Jagan visited the families of the deceased workers and demanded that the state and central governments ensure justice for the victims, saying the response to the incident lacked humanity and compassion
Visakhapatnam: Former chief minister and YSRC president Y.S. Jagan Mohan Reddy on Wednesday demanded an additional ex gratia of ₹1 crore and a job for one family member of each worker who died in the recent Visakhapatnam Steel Plant (VSP) accident. Speaking to media after visiting the injured at the hospital, Jagan Mohan Reddy described the compensation package announced by the government as misleading.
“The government’s claim of a ₹1.72 crore compensation package includes insurance and other benefits already due to the victims. The state should extend additional support on the lines of the assistance provided after the LG Polymers tragedy,” he observed.
The accident has claimed nine lives while five workers remain hospitalised. One of the injured is in critical condition with severe burn injuries. The former CM said workers are not responsible for the incident and their families deserved greater support. He sought similar compensation and employment benefits for the family of Pentaiah, a regular employee who died in April 2025, alleging that assurances given to the family have not yet been fulfilled. Jagan Mohan Reddy contended that the ₹11,440 crore package announced for the VSP is aimed at reducing the workforce and clearing debts, rather than improving safety and employee welfare. Assuring support to the injured workers and families of the deceased, he said the YSRC would pursue the issue and ensure compensation if the government fails to act.
The former chief minister asked the state government to pass a resolution in the State Legislative Assembly opposing its privatisation of Visakhapatnam Steel Plant. He recalled that the previous YSRC government had written to Prime Minister Narendra Modi expressing opposition to privatisation of the plant.The YSRC chief went on to allege that the workforce at the VSP has been reduced from 28,000 to 16,000 during the tenure of Chief Minister N. Chandrababu Naidu.
Workers are being compelled to face retrenchment or opt for voluntary retirement schemes. He pointed out that the steel plant is reducing the benefits for workers, such as medical facilities, housing allowances and bonuses.Jagan Mohan Reddy went on to charge that electricity charges of staff quarters in VSP have increased from ₹0.50 to ₹8.50 per unit.
