Vijayawada: The AP Assembly passed a resolution opposing the privatisation of Visakhapatnam Steel Plant (VSP). The Minister for Industries, Mekapati Gautam Reddy, proposed the resolution and it was passed unanimously.
Moving the resolution, Gautam Reddy said that considering the sensitivity of the issue and widespread agitation by the trade unions and common public against the divestment proposal, the Government of AP had acknowledged the need for supporting the cause of protecting Rashtriya Ispat Nigam Limited, the corporate entity of VSP, from disinvestment. He recalled that, accordingly, Chief Minister Y.S. Jagan Mohan Reddy addressed a detailed letter dated 06.02.2021 to the Prime Minister with a request to reconsider the proposal of disinvestment. He also suggested alternative solutions that may be helpful to address the issue of huge losses incurred by RINL. He further recalled that the CM also reiterated the stand of AP government during his interaction with the trade unions in Visakhapatnam on February 17.
The industries minister Reddy stated that the Cabinet deliberated on the issue at the council meeting on February 23 and took note of the unrest among the trade unions and the general public of Visakhapatnam. In this regard, the cabinet proposed to place the matter before the Legislature and make a resolution.
On the alternative solutions suggested by the state government to resolve the issue of huge losses incurred by VSP, he explained that the government suggested continuing the operations to achieve turnaround, allotting it a captive iron ore mine to reduce input costs, and extending it financial restructuring short-term loans. He stated that recently VSP had been at the forefront of the nation’s fight against Covid-19. It already supplied more than 9,000 tonnes of liquid medical oxygen (LMO) since the onset of pandemic.
The Minister said the Assembly unanimously made the resolution to oppose the decision of the Cabinet Committee on Economic Affairs (CCEA) for 100% strategic disinvestment of Government of India’s shareholding in RINL, along with ceding management control by way of privatization. The Assembly also resolved to seek the support of GoI to make RINL profitable and remain the pride of Telugu People and the state of Andhra Pradesh.
