Mumbai, June 10: Y.S. Jagan Mohan Reddy, former Chief Minister of Andhra Pradesh and president of the YSR Congress Party, has called for an additional compensation of ₹1 crore for the families of those who lost their lives in the Visakhapatnam Steel Plant accident.
Speaking to the media after visiting injured victims in the hospital, Jagan emphasized that, in addition to the compensation already due, the families of the deceased should receive this extra amount along with a job for one member of each family.
He pointed out that the government is claiming a compensation package of ₹1.72 crore. However, he clarified that this amount is merely the victims’ entitlement, including insurance and other benefits. The government should provide an additional ₹1 crore and ensure employment for a family member of each deceased worker. This package includes a small amount from the Prime Minister‘s Relief Fund and the state’s contribution.
Jagan noted that the explosion resulted in the deaths of nine individuals, with five others injured, one of whom is in critical condition with severe burns covering 95% of their body. He urged the government to show humanity and follow the precedent set during the LG Polymers incident by providing ₹1 crore in compensation.
While the government claims a ₹11,440 crore package for the Visakhapatnam Steel Plant (VSP), Jagan criticized that this amount is not aimed at improving safety standards or employee welfare. Instead, it appears focused on reducing the workforce through Voluntary Retirement Schemes (VRS), repaying bank debts, and other similar measures.
He asserted that the incident was caused by a liquid metal blast and that the employees were not at fault, warranting additional compensation.
Jagan also demanded similar benefits for the family of Pentyah, who was killed under similar circumstances in April 2025. Although the family was promised compensation and a job for a member, no action has been taken so far.
He urged the coalition government to pass a resolution opposing any steps toward the privatization of VSP, as previously done by the YSRCP. Jagan mentioned that the YSRCP government had written to the Prime Minister opposing privatization and suggested measures to save the steel plant and turn it into a profitable unit.
He criticized the coalition government for neglecting employees, noting that during Chandrababu Naidu’s tenure, the workforce shrank from 28,000 to 16,000. He stated that a total of 10,500 employees were laid off through VRS or retirement.
Jagan accused the management of pressuring employees to take VRS and highlighted cuts in various benefits, including medical facilities, HRA, LTA bonuses, and others. He also noted that the cost of electricity in quarters has surged from ₹0.50 per unit to ₹8.50 per unit.
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