Chennai: Chief Minister Edappadi K Palaniswami on Saturday urged Prime Minister Narendra Modi to intervene and advise the Steel Authority of India (SAIL) not to privatise the Salem Steel Plant (SSP).
In his DO letter to the Prime Minister, the CM said he has already discussed the issue with the Centre through letter dated April 26, 2017.
“I was informed by the employees of Salem Steel Plant that a legal advisor, asset valuer and transaction advisor have been appointed by the central government in June, 2017 itself and it was decided to constitute an advisory committee to speed up the privatisation of SSP by calling for a global tender”, the letter said.
It pointed out that four decades ago, the government of Tamil Nadu had acquired about 15.5. sq km of land in nine villages four decades ago in the foot hills of Kanjamalai, Salem District, something possible mainly because of the public sector character of the plant. “As you are aware, land is the most valuable and sought after asset in possession of Salem Steel Plant today,'' the letter said.
The plant, which provides employment to about 2000 persons and many ancillary and subsidiary units dependent on it, saw its financial condition improve financial year 2016-17 in comparison to the financial year 2015-16. The state government has supported SSP's expansion project costing Rs 2,005 crore with a structured package of incentives in the form of soft loan, capital subsidy, electricity tax exemption and environmental protection subsidy.
“I believe that the reasons for the Salem Steel Plant's recent losses must be studied thoroughly and the Salem Steel Plant must be given a chance to improve its efficiency to make a turn-around,” the CM said. “I, therefore, request you once again to kindly intervene in the matter expeditiously and advise the Ministry of Steel and the Steel Authority of India Limited not to privatize the Salem Steel Plant”, he added in the letter.
