Visakha Steel Plant: Center’s big financial package for Visakha Steel Plant, does privatization seem to be on hold?
Visakha Steel Plant: There is a heated debate going on for the last few days regarding the privatization of Visakha Steel Plant. It is known that the employees are worried about closing the loss-making steel plant and stopping privatization. In AP, the NDA government is in power at the Centre… especially as TDP has become a major element in the NDA, the employees are demanding the Center to stop the privatization of steel plants. While everyone is saying different things regarding privatization…the Center has given good news. It is reported that the Union Cabinet has approved a financial package of about Rs 11500 crore for steel plant operational payments. Union Steel Minister Kumaraswamy can make an official announcement on this package today.
Visakha Steel Plant is a part of Rashtriya Ispat Nigam Limited. The steel plant has nothing to do with the state government. It is a central government sector organization. But Visakha Steel Plant has become an emotion for the Telugu people. That is why political parties are reacting on the Visakha Steel Plant issue. This is also a reason for not privatizing the steel plant. AP parties are saying that privatization will not happen because they are playing an important role at the Centre. Whenever he gets a chance, AP leaders have been discussing the issue of privatization during their Delhi tour. The 7.5 million tonne capacity Visakha Steel Plant is facing financial difficulties. The steel plant suffered losses due to debt, availability of iron ore, operational management and fluctuations in the international market. Steel Secretary Sandeep Poundrick had recently given a statement that high level discussions are going on to support this company.
Get paid for three months!
CM Chandrababu had recently mentioned the steel plant during his meeting with the Prime Minister. It seems they discussed steel privatization and economic package. If the Central Government announces an economic package then Visakha Steel Plant will face financial problems. Visakha Steel Plant Officers Association met CS Vijayanand and told that he has not received salary for the last four months. He applied to the CS regarding the problems of the steel plant and immediate assistance from the government and said that the widows are not even getting pension. Apart from this, the employees asked the CS to ensure that Vishakha steel is used in the construction of the capital Amaravati and houses of the poor. He brought the issue to the notice of CM Chandrababu and asked him to convince the Center to advance Rs 500 crore per month for four months. BJP state president and MP Purandeshwari had recently said that the Center is planning to provide a financial package for the construction of Visakha Steel Plant. Deputy CM Pawan Kalyan also wants the Center to reconsider the privatization of the steel plant. It is reported that Pawan mentioned this during his recent visit to Delhi.
Has privatization stopped?
With the recent news that the Center is announcing a huge financial package for steel plants…analysts feel that there is a complete step back on privatization. It is believed that there is a possibility of a decision being taken on the issue of increasing steel production and merger with SAIL. If privatization stops… it will be a rallying point for the NDA government in the state.
