Centre not in hurry to privatize Vizag steel plant: Minister

Visakhapatnam: The central government is not in a hurry to privatise the Rashtriya Ispat Nigam Ltd, the corporate entity of Visakhapatnam Steel Plant. Rather, it would revamp it and restore normal production, said Union minister of state for steel Faggan Singh Kulaste.

The minister was in Visakhapatnam to participate in the Rozgar Mela. After distributing the appointment letters to the applicants, he told the media, “We have no plan to privatise the steel plant as of now. We will focus on its development and sort out the mining problems to improve steel production.’’

Notably, a team of the Telangana government visited the steel plant in the last three days to submit expression of Interest (EoI). Responded the minister, “This is a political stunt by the Telangana government.’’

 The minister said he would hold discussions with the union leaders to sort out all the issues before the government takes up the revival plan.

Local MP M.V.V. Satyanarayana said the BRS was not sincere in its efforts. “The party from Telangana wants to expand to Andhra Pradesh by using the steel plant crisis.”

Trade union leaders were not enthused by the minister’s comments. “It appears more like a political statement. Let the management cancel the appointment of three committees -- transaction, legal and evaluation. We will withdraw the agitation only after the Cabinet makes an announcement on cancellation of the privatisation move,’’ said CPI general secretary M. Paidiraju.

Some trade unions are spearheading the agitation against VSP privatisation for the last three years.

“The Visakhapatnam Steel Plant has a capacity to produce 7.3 million tonnes of steel annually but only two out three blast furnaces are operational, producing five million tonnes. Capital inputs and ore are needed to run the third blast furnace, for which purpose the company sought EOI from interested parties,” said a leader.