Jagan demands Rs 1 crore ex-gratia to VSP victims

Visakhapatnam: Former chief minister YS Jagan Mohan Reddy has demanded ₹1 crore ex gratia, over and above statutory dues, and employment for the kin of those who died in the Vizag Steel Plant (VSP) mishap. He also urged the Assembly to pass a resolution opposing privatisation of VSP. The YSRCP president visited a private hospital in the city on Wednesday and met the injured undergoing treatment.

Speaking on the occasion, Jagan said the YSRCP govt had responded promptly during the LG Polymers tragedy. “In an unprecedented move, ₹1 crore compensation was paid to each victim’s family. Jobs were also provided to eligible family members. The manner in which the present TDP-led government is handling the VSP victims is unjust,” he said.

He added that the govt cannot cite payments such as insurance, provident fund and gratuity—amounting to about ₹1.45 crore—as its responsibility. “These are the workers’ rightful entitlements. The government must provide ₹1 crore compensation from its own resources in addition to these dues,” he said.

Jagan alleged that the coalition govt has neglected VSP’s workforce, claiming employee strength has fallen from 28,000 to 16,000 over the past two years under chief minister Chandrababu Naidu. “Around 10,500 employees have exited through retrenchment, VRS or retirement. Workers are being pressured to opt for VRS, while benefits such as medical facilities, HRA, LTC and bonuses have been curtailed,” he said.

He also alleged that power tariffs in staff quarters were raised from ₹0.50 to ₹8.50 per unit, impacting employees’ living standards. Jagan reiterated his demand for additional compensation and warned that the YSRCP would take up the issue if it returns to power.