YS Jagan Demands Additional ₹1 Crore Ex-Gratia for VSP Accident Victims

YS Jagan Mohan Reddy, AP Former Chief Minister and YSRCP President, has demanded an ex-gratia of Rs 1 crore over and above what is due, along with a job for the kin of the deceased in the Steel Plant mishap. He also demanded that the Assembly pass a resolution opposing the privatization of VSP.

Speaking to the media in Visakhapatnam today (June 10) after consoling the victims undergoing treatment, YS Jagan said the government is boasting about a Rs 1.72 crore compensation package. However, he pointed out that the amount is the victims' rightful due in the form of insurance and other benefits. The government should pay an additional Rs 1 crore over and above that amount and provide a job to a family member of each deceased worker. The package includes a small amount from the PM Relief Fund and the State's share.
While the blast claimed nine lives and five injured persons are undergoing treatment, with one of them in a serious condition suffering 95 percent burn injuries, the government should act with humanity and follow the example set during the LG Polymers incident by providing Rs 1 crore ex-gratia, he said.

The government is boasting about the Rs 11,440 crore package for VSP, but the amount is not meant to improve safety parameters or employee welfare. Instead, it is meant for reducing staff through VRS, clearing bank dues, and other such measures.

The incident occurred due to a liquid metal blast, and the employees were not at fault. Therefore, additional compensation should be paid, he demanded. He also sought similar benefits for the family of Pentiah, a regular employee who died in April 2025 under similar circumstances. Though the family was assured compensation and a job for a family member, nothing has been done so far.

YS Jagan Mohan Reddy also demanded that the coalition government pass a resolution in the Assembly opposing any move to privatize VSP, as the YSRCP government had done earlier. He noted that the YSRCP government had also written letters to the Prime Minister opposing privatization and suggesting measures to save the Steel Plant and make it a profitable unit.

The coalition government has been neglecting the staff, and the number of employees has dwindled from 28,000 to 16,000 during Chandrababu Naidu's tenure. In all, 10,500 employees were shown the door either through retrenchment, VRS, or retirement.
The management is coercing employees to opt for VRS and has curtailed several benefits, including medical facilities, HRA, LTA, bonuses, and others. It has also increased electricity charges in the quarters from Rs 0.50 per unit to Rs 8.50 per unit.

The standard of living of VSP employees has deteriorated during the past two years, and the government should consider the demand and provide an additional compensation of Rs 1 crore. Failing this, YSRCP will take up the issue when it returns to power, he assured.
Earlier, he consoled the injured persons undergoing treatment in the hospital and assured them of all possible assistance.