Visakhapatnam: The disinvestment process of the Rashtriya Ispat Nigam Limited (RINL), the corporate entity of Visakhapatnam Steel Plant (VSP), has not been frozen, the Union ministry of steel clarified on Friday, a day after Union minister of state for steel Faggan Singh Kulaste had made conflicting statements about it.
On Thursday, Kulaste had stated that the Centre had no plans to privatise the VSP, allowing BRS leaders, including Telangana industries minister K.T. Rama Rao, to claim credit, contending that Chief Minister K. Chandrashekar Rao's staunch opposition had forced the Centre to reverse its decision to privatise the PSU. Further, Kulaste had stated that the Centre was working to address mining-related problems for the plant and strengthen the plant's autonomy.
However, Kulaste later changed his position, claiming that a decision on RINL's strategic disinvestment was not within his purview because it was a Cabinet decision.
Clarifying media reports, the Union steel ministry on Friday stated that the process was ongoing and that efforts are being made by the company and supported by the government to improve RINL's performance and keep it as a going concern.
Meanwhile, Rajya Sabha member G.V.L. Narasmha Rao welcomed the minister's statement in the morning but later in the evening stated that the privatisation will take at least another two years. Serious efforts will be made to develop the steel plant by procuring iron ore, coking coal and capital inputs, he said.
On Friday, the MP met with the RINL chairman and managing director Atul Bhatt for an hour regarding the development initiatives. The CMD stated that the new expression of interest (EoI) to procure raw materials or working capital had received a positive response. The statement from the ministry, according to senior steel industry trade union representatives, was anticipated. In their meeting with the minister on Thursday evening, the leaders categorically sought the announcement from the Cabinet Committee on Economic Affairs (CCEA).
“In yesterday’s meeting with the minister, we told him that the Cabinet has to announce the cancellation of the privatisation move and not him. Until then, we will continue with the agitation,’’ said Mantri Rajasekhar, INTUC general secretary and chairman of Visakha Ukku Privatikarana Porata Committee.
On Thursday, BRS ministers claimed that Chief Minister K. Chandrashekar Rao’s pressure against the Centre’s plan to privatise the VSP along with his decision to bid for the PSU compelled the Centre to change its mind about privatising the PSU. However, the BRS leaders stated that they will remain vigilant on the VSP privatisation issue and will not believe Kulaste’s comments unless the CCEA makes an official announcement to that effect.
"After the Chief Minister intervened and decided to bid in the EOI, the Centre backtracked, and Union minister of state for steel Faggan Singh Kulaste announced that privatisation would not be undertaken immediately," Rama Rao said. He stated that, while he did not take Faggan Singh's statement seriously, the Telangana government would persist till the Centre halted the privatisation of steel plants and established a steel facility in Bayyaram.
Another Telangana minister asserted that the Centre changed its position on privatisation after the BRS led the public outcry against the privatisation of the Vizag Steel Plant and the EOI bid.
Meanwhile, Jana Sena leader Pawan Kalyan stated that his party has always wanted the steel plant to remain as a PSU since the plan has sentimental value to the Telugu people. ''When the government announced the privatisation plan, I personally met Union ministers in New Delhi to ask them to reconsider the decision. They responded positively,” he asserted.
