Edappadi K Palanisami writes to Narendra Modi on Salem steel plant privatisation

CHENNAI: Terming the Salem Steel Plant an “iconic symbol” of Tamil Nadu, Chief Minister Edappadi K. Palanisami on Thursday opposed any move by the Union Government to privatise the public sector undertaking firm. In a letter to Prime Minister Narendra Modi, Palanisami said any move to privatise the Salem Steel Plant would cause considerable unrest amongst the people, particularly amongst those whose lands were acquired.

“The state government had acquired about 15.5 sq.km. of land in 9 villages more than four decades ago at the foot hills of Kanjamalai in Salem for the plant. It was possible to undertake such extensive land acquisition mainly because of the public sector character of the plant,” the CM said. “Today, any proposal to privatise the Salem Steel Plant would cause considerable unrest amongst people, particularly amongst those whose lands were acquired,” he said.

Tamil Nadu government had supported the Rs 2005 crore expansion project of the plant with a “structured package” of incentives in the form of capital subsidy, soft loan, electricity tax exemption and environmental protection subsidy, he said. Referring to the proposed privatisation, the CM told Modi that the move “has caused lot of apprehension and dismay amongst the people of the state.”

He said public sector undertakings were capable of performing very well provided they were given the right support and direction in the dynamic economic scenario. “The causes for the company's recent losses must be studied and Salem Steel Plant must be given a chance to improve its efficiency and make a turn around,” he said. If that was done, he said the plant would transform once again into a profit making company.