Visakhapatnam Steel Plant Will Never be Privatized, says Palla Srinivasa Rao

Addressing the media during a press meet at the TD’s central office in Mangalagiri, Srinivasa Rao dismissed what he termed “deliberate disinformation campaigns” being propagated by leaders and trade union representatives allegedly aligned with the YSRC.

The TD leader underscored the role played by Chief Minister Nara Chandrababu Naidu in protecting the plant at a time when it was battling severe financial crisis. He pointed out that the revival package of over ₹14,000 crore, ₹11,440 crore from the Union government and ₹2,600 crore from the state, had been mobilised to stabilise operations. “These funds have ensured a steady supply of raw materials, power and water, breathing life into the plant’s operations,” he said, adding that this intervention had decisively altered the trajectory of the enterprise.

Responding to apprehensions raised by workers’ unions, Srinivasa Rao clarified that the outsourcing of certain auxiliary works to private firms should not be mistaken for privatisation. “Such arrangements are not new. They have existed for decades. Today, more than 15,000 contract workers are employed in the plant, and their contribution is vital to production,” he said.

Explaining the economics of scale, Srinivasa Rao noted that the plant has three blast furnaces, of which at least two must operate at full capacity to achieve break-even. “Now, with two furnaces running optimally, the plant has entered profit. Despite a monthly wage bill of ₹240 crore, the plant is generating surpluses of ₹100–200 crore,” he added.

Srinivasa Rao reaffirmed the government’s commitment to ensuring justice for families displaced by the plant’s establishment. He said sustained efforts had already secured relief for 8,000 displaced persons and further measures were in progress.

He cautioned that misinformation on social media posed a grave risk to public trust. “False knowledge is more dangerous than ignorance. I appeal to everyone: verify facts before forwarding messages. The steel plant is safe and its future secure in the public sector,” Srinivasa Rao said.