Vizag Steel Plant blast: Jagan demands ₹1 crore extra ex-gratia, job for kin
Synopsis
Nine workers are dead and one lies critical with 95 per cent burns after a liquid metal blast at Visakhapatnam Steel Plant — and YSRCP chief Jagan Mohan Reddy is demanding ₹1 crore extra ex-gratia per family, a job for each victim's kin, and an Assembly resolution against VSP privatisation, directly challenging the coalition government's ₹1.72 crore package as nothing more than what workers were already owed.
Key Takeaways
Jagan Mohan Reddy demanded an additional ₹1 crore ex-gratia for families of Visakhapatnam Steel Plant blast victims on 10 June .
The blast killed nine workers ; five remain hospitalised, one in critical condition with 95% burn injuries .
Jagan called the government's cited ₹1.72 crore package the workers' rightful due, not a state concession.
He demanded an Assembly resolution opposing VSP privatisation and cited the LG Polymers precedent for ₹1 crore ex-gratia.
VSP's workforce has reportedly fallen from 28,000 to 16,000 during CM Chandrababu Naidu's tenure, with 10,500 exits.
Electricity charges in VSP staff quarters allegedly hiked from ₹0.50 to ₹8.50 per unit .
Former Andhra Pradesh Chief Minister and YSR Congress Party (YSRCP) president Y.S. Jagan Mohan Reddy on Wednesday, 10 June demanded an additional ex-gratia of ₹1 crore for the families of workers killed in the Visakhapatnam Steel Plant (VSP) mishap, over and above the compensation already due to them. Jagan made the demand after visiting injured workers at a hospital in Visakhapatnam.
What Jagan Demanded
Speaking to reporters, Jagan argued that the state government's cited compensation package of ₹1.72 crore is not a government gesture — it comprises insurance payouts and other benefits that the victims were already entitled to by right. He called on the government to pay an additional ₹1 crore per deceased worker's family and provide a job to one family member of each victim.
He also invoked the precedent set during the LG Polymers disaster, where a ₹1 crore ex-gratia was extended, and urged the current coalition administration to follow the same standard of humanitarian response.
The Blast and Its Toll
The incident, caused by a liquid metal blast, claimed nine lives. Five injured workers are currently undergoing treatment, with one in a critical condition suffering 95 per cent burn injuries. Jagan maintained that the employees were not at fault and that the tragedy underscored systemic failures in safety management at the plant.
He also demanded equivalent compensation and employment support for the family of Pentiah, a regular VSP employee who died in April 2025 under similar circumstances. According to Jagan, despite assurances of compensation and a job for a family member, nothing has been delivered so far.
VSP Privatisation Row
Jagan further demanded that the Andhra Pradesh Legislative Assembly pass a resolution opposing any move to privatise VSP — a step he said the YSRCP government had already taken, including writing letters to the Prime Minister with proposals to save the steel plant and restore its profitability.
He criticised the government's ₹11,440 crore package for VSP, alleging it is directed at clearing bank dues and reducing staff through voluntary retirement schemes (VRS), rather than improving safety standards or employee welfare.
Workforce Decline and Worker Welfare
Jagan alleged that the plant's workforce has shrunk from 28,000 to 16,000 employees during Chief Minister N. Chandrababu Naidu's tenure, with 10,500 workers exiting through retrenchment, VRS, or retirement. He further alleged that management is pressuring employees to opt for VRS and has rolled back several benefits, including medical facilities, house rent allowance (HRA), leave travel allowance (LTA), and bonuses.
Electricity charges in staff quarters have reportedly been hiked from ₹0.50 per unit to ₹8.50 per unit, he added. As the injured worker battles for survival, pressure is mounting on the coalition government to respond with both immediate relief and a credible long-term safety overhaul at VSP.
Point of View
Not discretionary relief. The LG Polymers precedent he invokes is real, and the optics of a worker dying with 95 per cent burns while the state debates semantics are damaging. More broadly, VSP's workforce collapse — from 28,000 to 16,000 — is a structural crisis that neither the current government nor the previous one has resolved. The ₹11,440 crore package, if it is primarily a debt-clearance and VRS exercise rather than a safety and productivity overhaul, does nothing to prevent the next blast.
NationPress
5 Aug 2026
Frequently Asked Questions
What happened at the Visakhapatnam Steel Plant?
A liquid metal blast at the Visakhapatnam Steel Plant (VSP) killed nine workers. Five others are undergoing treatment, with one in a critical condition suffering 95 per cent burn injuries. The incident has triggered demands for enhanced compensation and a safety review.
What is Jagan Mohan Reddy demanding for the victims' families?
YSRCP president Y.S. Jagan Mohan Reddy has demanded an additional ₹1 crore ex-gratia per deceased worker's family, over and above the ₹1.72 crore the government cited, along with a job for one family member of each victim. He also sought the same benefits for the family of Pentiah, who died in April 2025 under similar circumstances.
Why does Jagan say the government's ₹1.72 crore package is insufficient?
Jagan argued that the ₹1.72 crore figure includes insurance payouts and other benefits the workers were already legally entitled to, not additional government relief. He said a genuinely humanitarian response would add ₹1 crore on top of that amount, as was done during the LG Polymers disaster.
What is the controversy around VSP privatisation?
Jagan has demanded that the Andhra Pradesh Assembly pass a resolution opposing the privatisation of Visakhapatnam Steel Plant, a step the YSRCP government had previously taken. He alleged the current ₹11,440 crore package is aimed at debt clearance and staff reduction through VRS, not at improving safety or worker welfare.
How has VSP's workforce changed in recent years?
According to Jagan, VSP's employee count has dropped from 28,000 to 16,000 during Chief Minister N. Chandrababu Naidu's tenure, with 10,500 workers leaving through retrenchment, VRS, or retirement. He also alleged that worker benefits including medical cover, HRA, LTA, and bonuses have been curtailed.
