The Prime Minister Dr. Manmohan Singh wanted the Visakhapatnam steel Plant to set the pace of modernization of Indian Steel Industry. Laying the foundation stone for the expansion of Visakhapatnam Steel Plant in Vizag today the Prime Minister said that the UPA Government was making massive investment of over Rupees 8600 crores in the Vizag Steel Plant which would immensely benefit the people of the region. Dr. Singh said the steel that comes out of Visakhapatnam Steel Plant is based on the blood, sweat and tears of the Telugu people and added "We must all work together to ensure that India, with its huge iron ore reserves, becomes one of the largest producers of steel in the world. And does so in an efficient, competitive manner".

Commending the turn around of the Vizag steel plant as a 'landmark achievement' Dr. Manmohan Singh said "It shows that given the hard work, commitment and favorable market dynamics, our PSUs can perform well against competition. From being a perpetually loss making company ready for disinvestment, to being a firm with zero debt and over Rs. 2000 crores of profit in 2004-05, the Rashtriya Ispat Nigam Limited has shown other loss making PSUs the way forward. The huge investment being made to double its capacity is a signal of the commitment of our government to making this a world class steel plant".

Stating he is aware that the Hindustan Shipyard was passing through difficult times the Prime Minister made an emphatic declaration that his government would work for the revival of the Hindustan Shipyard and also to finalize the proposals for revival of Bharat Heavy Plates and Vessels. "A proposal for its (Hindustan Shipyard) revival is under consideration and our government will work for the revival of this shipyard, which is the largest in the east coast. I hope with our efforts, we will once again have a world class shipbuilding industry in Vizag" he expressed.

Chief Minister of Andhra Pradesh Dr.Y.S.Rajasekhar Reddy said the Prime Minister showed for his concern for the state by allocating Rs.8,600 crores for the expansion of the Visakhapatnam Steel Plant. He also thanked the Prime Minister for allocating Rs.16,000 crores for expansion of Hindustan Petroleum and Chemicals Limited (HPCL) and modernization of National Thermal Power Corporation (NTPC) Units at a cost of Rs.6,000 crores. The Chief Minister conveyed his thanks to the Prime Minister for the Centre's proposal to set up garments and textiles unit in Visakhapatnam area which would provide employment to 60,000 people. Dr.Reddy also revealed that the Centre had allotted Rs.1,300 crores under the Jawaharlal Nehru National Urban Renewal Mission (JNNURM) for Hyderabad and Visakhapatnam cities of the State. He conveyed his gratitude to the Centre for sanctioning Rs.100 crores to solve the drinking water problem of Visakhapatnam city. However, he appealed to the Prime Minister not to merge the Visakhapatnam Steel Plant with the Steel Authority of India Ltd. (SAIL). Earlier, Shri Ram Vilas Paswan, Union Minister for Steel, Chemicals & Fertilizers in his presidential address declared grant of 'Mini Ratna' status to Visakha Steel Plant with immediate effect. Shri Paswan revealed that the Centre would establish a Rs.50 crore Iron Research and Development Centre in Hyderabad. The Minister announced an exgratia of Rs. 5,000 each to the workers of the Steel Plant on the occasion.

Union Ministers of State Dr. Dasari Narayana Rao for Coal, Dr.Akhilesh Das for Steel, Dr.T.Subbarami Reddy for Mines, Shri P. Pallam Raju for Defence have also participated.