Strategic Sojourn & Site Scrutiny Spark Steel Sector Speculation

On 6 June 2025, Steel Secretary Sandeep Poundrik visited the historic Visvesvaraya Iron & Steel Ltd in Bhadravathi, Karnataka, signalling renewed central interest in repurposing the dormant plant for producing high-grade steel tailored to India’s defence & aerospace sectors. Addressing media at Shivamogga airport, Poundrik revealed the visit’s purpose was to conduct a feasibility review before making investment decisions.

Metallurgical Mission & Ministerial Mandate for Modernisation Moves

Accompanied by a high-powered team including Amarendu Prakash, Chairman & Managing Director of the Steel Authority of India Ltd, Joint Secretary Abhijith Narendra, & SAIL Technical Director M R Gupta, the delegation toured major installations at VISL, from the primary mill & forge plant to the blast furnace. Officials from the VISL management provided an in-depth presentation detailing infrastructure readiness, land availability, & refurbishment potential.

Feasibility Findings & Fiscal Frameworks Form Fulcrum of Future Fate

While no immediate investment figure was announced, Poundrik clarified that a thorough feasibility study would precede any financial commitment. The revival cost for VISL is yet to be determined, as both technical viability & strategic alignment with national goals, like indigenising defence materials, are under assessment. The Ministry of Steel aims to examine all operational models before recommending restructuring.

Salem Steel Struggles Spur Scrutiny & Scalable Solutions Sought

Parallel to the Bhadravathi inspection, the ministry also evaluated the underutilised Salem Steel Plant in Tamil Nadu, another SAIL-managed unit. Poundrik shared that the plant, operating below its 0.35 million metric ton capacity, has been advised to scale up production. Only upon achieving full operational throughput will further expansion be considered, hinting at a performance-based reform model.

Worker Will & Workforce Wishes Weave into Wider Revival Roadmap

During the VISL tour, the VISL Workers’ Association submitted a memorandum to SAIL & the Steel Secretary. They proposed the establishment of a new 2.5 million metric ton per annum steel plant leveraging existing land & industrial infrastructure. The plea also included requests for environmental clearance on 150 acres of forest land & the resolution of legal barriers to 140 hectares in Sandur, crucial for iron ore mining.

Defence-Grade Dedication & Diversification Dictate Developmental Direction

The central government’s inclination towards producing specialty & quality steel for defence & aerospace needs aligns strategically with national security ambitions & import substitution efforts. VISL’s existing ecosystem, including its forge plant, presents a potent platform for such transformation, if supported by modern technology infusion & targeted capital investment.

Policy Pivots & Pragmatic Planning Power Plant’s Potential Resurrection

The revival of legacy steel plants like VISL fits into India’s broader industrial revitalisation policy. By repurposing heritage assets for futuristic needs, the ministry aims to foster regional employment, reduce import dependencies, & strengthen indigenous capacities in strategic sectors. The final direction, however, hinges on empirical feasibility data now being collected.

Collaborative Consultations & Central Consensus to Catalyse Change

As the delegation concluded its visit, the steel secretary reiterated the government’s commitment to exploring every viable option for plant revival. While cautious about committing timelines or investments prematurely, the tone was constructive & hopeful. The ministry’s approach appears anchored in collaboration, environmental prudence, & economic rationale.

Key Takeaways:

• The government is considering producing defence-grade steel at VISL in Bhadravathi

• Salem Steel Plant has been asked to achieve full 0.35 million metric ton capacity first

• VISL Workers’ Association proposed a new 2.5 million metric ton plant leveraging old assets