Visakhapatnam: While the 30,000-strong workforce of the loss-making RINL-run Vizag Steel Plant is concerned over a move by the central government to privatize the plant, a new proposal from the unions is giving them some hope.
A section of the steel plant union leaders and political parties like the state BJP is trying to cool down the tempers of the staff by proposing a merger of VSP with the Steel Authority of India Limited (SAIL) and the National Mineral Development Corporation (NMDC).
This proposal would be taken up with Prime Minister Narendra Modi during his two-day visit to Vizag from November 11.
Katam Chandra Rao, president of the Steel Executives Association (SEA), an affiliate of Steel Executives Federation of India, said they had first proposed the strategic merger of RINL-SAIL-NMDC into a single entity under the Ministry Steel.
“We have written a formal letter to PM Modi explaining this proposal. This would only expand steel capacities, but also achieve the National Steel Policy targets of 300MTPA steel capacity by 2030-31. SAIL will be benefited as it can take forward its expansion plans with an investments of Rs 1 lakh crore by 2030,” Chandra Rao told DC.
Supporting the proposal, BJP MLC PVN Madhav highlighted his party's stand in protecting the “interests” of the steel plant employees at the recent GVMC council meet. He said the state BJP was pressing the Centre to consider the merger plan.
"We will prepare a proper format on the merger proposal and hand this over to the PM during his visit to Vizag on November 11," he said.
Since the non-executive cadre of the steel plant was against the merger, the state BJP urged the government to first stop the privatization before talking about the merger or other matters related to the plant.
VSP Porata Samiti convener Ayodhyaram said SAIL's three steel plants -- the Salem in Tamil Nadu, Alloy in West Bengal and Bhadravati in Karnataka -- have been put up for sale. In that case, how can the RINL-VSP be merged with SAIL, a loss-making firm in which the government has only a 65 per cent stake, he asked.
“We do not want to hear all these things, we only want the government to withdraw its plant privatization plan,” Ayodhyaram said.
