Why is the CISF leaving Visakhapatnam Steel Plant? | Explained

Account subscription benefits alongside Premium Stories, Editorials, Opinions and more. Unlock these with Subscription

CISF personnel of the Visakhapatnam Steel Plant unit conduct a mock drill on the plant premises. File | Photo Credit: Special Arrangement

Ever since the Cabinet Committee on Economic Affairs (CCEA) approved the 100% strategic sale of Rashtriya Ispat Nigam Limited (RINL )—the corporate entity of the Visakhapatnam Steel Plant (VSP)—on January 27, 2021, the story of the plant has gone from bad to worse.

The Union government cited chronic financial losses , mounting debt and a lack of captive iron ore mines —which rendered the public sector unit (PSU) unsustainable—as the primary reasons for the decision. To stall the privatisation move, plant workers and trade unions mobilised a strong protest under the banner of the Visakha Ukku Parirakshana Porata Committee (VUPPC), successfully halting the sale so far.

However, operational realities remain grim. The plant has seen mass downsizing of both permanent and contract staff since 2021 . Its financial position also presents a grim picture, with escalating debt and recurring production and financial losses, despite a revival package of roughly ₹11,440 crore from the Union government.

Safety concerns have been growing, as the plant has been hit by a string of workplace accidents —including major incidents resulting in fatalities— which staff and trade unions attribute to compromised maintenance caused by severe cash flow constraints.

Amid these challenges, the recent announcement of the disengagement of the Central Industrial Security Force (CISF) has sparked widespread concern among employees. Staff contend that RINL is not ending CISF services because of a reduced need for high-level security, but as a direct consequence of severe financial distress.

The VSP has been facing a severe working capital crisis , which lies in its key structural disadvantages, primarily raw material costs. For want of captive iron ore mines, RINL has been purchasing raw ore in the open market at ₹5,000 to ₹7,000 per tonne. In contrast, competitors like SAIL and Tata Steel procure ore from captive sources at ₹1,500 to ₹2,000 per tonne.

Its debt-funded expansion from 3 MTPA to 7.3 MTPA has burdened the plant with about ₹3,400 crore annually in interest and depreciation costs.

In August 2026, following a proposal from RINL, the Ministry of Home Affairs (MHA) invoked Section 14(2) of the CISF Act to clear the complete disengagement of the force. This triggered a three-month notice period, with a full exit by November 17, 2026.

The order covers 1,331 sanctioned posts (1,033 Security Wing and 298 Fire Wing personnel) —the first complete exit of the CISF from a major steel PSU. The MHA also explicitly asked the CISF to recover all pending financial dues from RINL before the final exit.