YS Jagan Seeks Higher Compensation, Blames Safety Failures for Visakha Blast

Former Andhra Pradesh Chief Minister and YSR Congress Party president Y.S. Jagan Mohan Reddy on Wednesday blamed the fatal explosion at the Visakhapatnam Steel Plant on what he described as a prolonged neglect of safety standards, maintenance practices, and worker welfare . He alleged that both the state and central governments had failed to address growing concerns within the plant, resulting in a tragedy that claimed the lives of nine workers.

Jagan visited the families of those killed in the June 8 accident and met injured workers undergoing treatment at KIMS Hospital in Visakhapatnam. Later, speaking to the media, he expressed condolences to the victims' families and criticized the response of the authorities, saying the tragedy deserved greater urgency and sensitivity from both the state and the Centre.

The YSRCP chief argued that the accident was symptomatic of deeper structural problems within the steel plant. He claimed that the workforce had been drastically reduced over the past two years, with nearly 10,500 employees leaving through retirement, voluntary retirement schemes, and reductions in contract labour. According to him, the plant's workforce has shrunk from around 28,000 employees to about 16,000 , significantly increasing the burden on those still employed.

Jagan alleged that workers have also been grappling with delayed salaries and the suspension of several welfare benefits. He claimed that payments were being linked to production targets and that benefits such as bonuses, medical facilities, house rent allowance (HRA), leave travel concession (LTC), and leave encashment had been discontinued over the past two years. Such measures, he said, had adversely affected employee morale and working conditions.

He further criticized the steep increase in electricity charges for staff quarters. According to Jagan, power tariffs that were once heavily subsidized have risen sharply, placing an additional financial strain on workers and their families. He alleged that the move was effectively pushing employees to vacate company housing.

Questioning the utilization of the ₹11,440-crore financial package announced for the steel plant, Jagan asked whether the funds had been used to strengthen operations, improve safety infrastructure, or enhance worker welfare. Instead, he alleged that much of the money had been spent on voluntary retirement payouts, GST liabilities, and servicing old debts.

On the cause of the accident, Jagan maintained that workers should not be held responsible. He suggested that operational shortcomings, poor-quality raw materials, or deficiencies in handling molten steel could have contributed to the disaster. According to his assessment, molten metal overflowed during a transfer process and fell onto workers, leading to the devastating loss of life.

Reiterating his party's opposition to the privatization of the steel plant, Jagan recalled that his government had written to Prime Minister Narendra Modi in 2021 urging the Centre not to proceed with privatization plans. He said the Visakhapatnam Steel Plant remains a vital industrial asset and should be protected through stronger investment, modernization, and workforce support.

The former chief minister also demanded additional financial assistance for the victims' families. He urged the coalition government to provide an extra ₹1 crore in compensation over and above the amount already payable to the affected families. He further called on the state government to press the Centre for immediate measures to improve industrial safety standards , strengthen maintenance systems, and ensure better working conditions for employees.

As investigations into the explosion continue, the tragedy has renewed concerns about worker safety and operational accountability at one of India's largest public-sector steel manufacturing facilities.