Visakhapatnam steel plant privatization put on hold, says Union Minister
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VISAKHAPATNAM: The Centre has frozen plans to privatize Visakhapatnam Steel Plant (VSP) as of now, said Union minister of state for steel Faggan Singh Kulaste here on Thursday.
The minister’s announcement comes three years after the Centre declared its intent to privatize the navratna PSU and close on heels of Telangana government’s plans for the plant. “Centre is focusing on strengthening the steel plant to achieve full capacity by sorting out raw material issues and the government will discuss the issue with the plant management,” the minister told reporters at the rozgar mela organised at Port Kalavani stadium. Kulaste, who later held talks with trade unions, said the Central government was keen on sorting out the captive mines issue and strengthening the Vishakha steel plant, which is the country’s first shore-based integrated steel plant with a workforce of 14,800.
The Union minister’s announcement came as a big relief to employees of the steel plant, which was set up in 1982 after a prolonged agitation that spiralled into violence. On February 2, 2021, the Centre’s announcement on strategic sale of the steel plant, sparked off agitations by trade unions, who are 800 days into the stir.
The Telangana government, which is opposing Centre’s PSU divestment policy, recently decided to bid for the expression of interest (EOI) proposal to acquire the steel plant in return for capital investment. Chief minister YS Jagan Mohan Reddy has written at least three letters to Prime Minister Narendra Modi, requesting him to stop the privatization process.
The secretary of the recognized union of the plant J Ayodhya Ram told TOI that they requested the minister to allot raw materials, iron ore, coal, and sufficient rail rakes. If the government provides raw materials and rail rakes now, the plant will produce 7.3 MT products with a turnover of Rs 50,000 crore.
After discussions with the steel minister, the trade union leader said, he took the minister’s assurance with a pinch of salt. “When we asked a specific question on divestment, he said he alone cannot stop privatization,” Ayodhya Ram said. VSP was set up after over 16,000 villagers gave up 24,000 acres of land for the plant that was started with 18,000 employees with a production capacity of four million tonnes. After expansion, the plant touched its capacity of 7.3 million tonnes.
(Source : Times of India)
