The National Democratic Alliance government led by Bharatiya Janata Party at the Centre, which was stubborn on privatising the Visakhapatnam Steel Plant at any cost in the last four years, seems to have changed its mind, at least for the time being, thanks to the political developments both at the centre and in Andhra Pradesh.
Union minister of coal and mines G Kishan Reddy on Wednesday indicated that there are no immediate plans to privatise the Visakhapatnam Steel Plant and it will not happen in the near future.
“The proposals for the privatisation are still pending with the Centre and there are no plans to take them up again,” he said.
Stating that there is no need for the people of Andhra Pradesh or the workers of the steel plant to worry about the VSP privatisation, Kishan Reddy said in fact, no private players have the capacity to take over the Vizag steel plant.
“The Centre will continue to extend financial assistance to the steel plant,” he said.
He also indicated that the Centre would consider the demand for allocation of captive iron ore mines for the Vizag steel plant.
“In fact, the steel plant management can also take part in the auctioning of iron ore mines and win the bid,” he suggested.
TDP state president Palla Srinivasa Rao, who won as MLA from Gajuwaka where most of the employees of RINL reside, said their party is very firm on retaining RINL as a public sector entity.
During the run-up to general elections, Chief Minister N Chandrababu Naidu, whose support is crucial for the Modi 3.0 Government, said after the elections he would lead a delegation of alliance partners to Delhi and ask the Centre to drop the privatisation proposal.
He had also claimed credit for withdrawal of privatisation proposal and launching of revival package when Atal Bihari Vajpayee was the Prime Minister.
The employees’ unions and the officers’ association of the VSP are asking for merger of the VSP with the steel giant Steel Authority of India Limited (SAIL), to prevent closure of the steel plant.
