4 min readHyderabadJun 9, 2026 02:23 AM IST
First published on: Jun 8, 2026 at 09:24 PM IST
Hours after eight people were killed after molten metal fell on them at the Visakhapatnam Steel Plant (VSP) in Andhra Pradesh’s Visakhapatnam, trade union leaders at the plant blamed the accident on staff shortage amid ongoing privatisation efforts.
“The number of workers has been decreasing at the plant even as the production output remains the same,” Ayodhyaram, a trade union leader at the plant, told The Indian Express.
At least eight workers were killed and six injured when molten metal fell on them at the plant. Twenty workers were estimated to have been inside the unit at the time of the accident.
The plant comes directly under the Ministry of Steel and is governed by a general body. As authorities scramble to assess the situation, union leaders blame the accident on staff shortage.
“In the past, 6,000 contract workers were removed from their jobs, 2,000 took voluntary retirement and 5,000 retired, leaving just 8,800 workers to produce 18,000 tonnes of molten metal every day. No one cares how we meet targets,” Ayodhyaram of the CITU said. “Accidents are bound to happen when workers’ welfare is not taken into consideration.”
Ayodhyaram said he was at the plant when the accident took place. “I just saw people rushing out, and rushed out on my own,” he said.
For their part, sources said the steel plant conducts an external safety audit every year and internal inspections every three months through the plant’s safety engineering department. “This is a freak accident. There has been no breach of any safety protocol,” one management source said.
Another trade union leader said the last safety audit at the plant was conducted in March 2026. “The audit did not show any lapses, we were told,” said M Rajasekhar, who is also INTUC’s national general secretary.
According to workers, the steel plant remained at the heart of a controversy till 2025 because there “were efforts to privatise it”. Operational since 1991, the VSP remains India’s first shore-based integrated steel plant, with a capacity of 7.3 million tonnes per annum.
The Centre first announced “strategic disinvestment” in 2021, citing mounting losses of Rs 20,000 crore by 2024. “There were massive protests against this and the plan was shelved. But recruitments froze even as we need more workers,” said INTUC’s Rajasekhar.
Trade unions said that apart from compensation, the government should provide jobs to the kin of those killed and injured in the accident. “We need more workers. We need more permanent workers. A simple ex-gratia is not enough,” said Rajasekhar.
The plant management said recruitments on compassionate grounds had taken place in the past and were likely to continue. “The government will compensate for the loss of lives,” a steel plant management source said.
Both Prime Minister Narendra Modi and Chief Minister N. Chandrababu Naidu have offered condolences.
“The accident at the Visakh Steel Plant has left me deeply shocked. I am distressed to learn that several workers have lost their lives in this accident. I have spoken to the concerned officials and directed them to undertake relief measures in coordination with all government departments,” Naidu said in a post on X.
Prime Minister Narendra Modi announced an ex-gratia of Rs 2 lakh for the deceased and Rs 50,000 for the injured. “Saddened by the mishap at the Visakhapatnam Steel Plant. Condolences to those who have lost their loved ones. Praying that the injured recover at the earliest. The local authorities are providing all possible assistance to those affected,” Modi’s post on X further said.
As authorities scramble to assess the situation, union leaders blame the accident on staff shortage. (Express photo) 
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