Visakhapatnam steel plant is facing a crisis as water supply through Yeleru canal to the Kanithi balancing reservoir has dwindled.

According to sources, the steel plant, at its increased capacity of 6.3 million tonnes, requires at least 33 million gallons daily (mgd) but it is getting only 25 mgd or so, and the plant is finding it difficult to manage the production process.

From the last week of March, in particular, water supply to the Kanithi balancing reservoir has come down substantially, as pumping at Rajahmundry from the Godavari has been affected and the water levels at Yeleswaram reservoir in East Godavari have also gone down. Pipeline leaks have also contributed to the problem, it is said.

The steel plant management has appealed to the State government to address the problem. The CMD, P Madhusudan, met the Chief Secretary a few months ago and apprised him of the situation. There was some improvement after the meeting, but as the summer has set in, the problem has resurfaced.

The unions in the steel plant as well as the management have urged the State government to take immediate steps to augment water supply to the plant through the Yeleru canal.

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