Visakhapatnam MP M Sribharat and TDP State president Palla Srinivas on Tuesday firmly dismissed speculation over privatisation of the Visakhapatnam Steel Plant (VSP), assuring that the NDA government is committed to reviving and retaining the plant in the public sector.
Sribharat said he had held several discussions with Union Minister HD Kumaraswamy to speed up the appointment of a permanent Chairman and Managing Director (CMD) and a full board of directors. “Stable leadership will help the plant strengthen operations. Once this is in place, NDA leaders will hold regular review meetings to ensure progress,” he said and added that layoffs would not continue and efforts were on to make the plant profitable.
On captive mines, the MP clarified that VSP currently buys iron ore at commercial rates. Mines purchased in Odisha are stuck in legal hurdles, while AM/NS mines were acquired through auction, not special allotments. Chief Minister N Chandrababu Naidu has also proposed a slurry pipeline for the plant, on the lines of AM/NS, to reduce costs.
On the railway zone issue, Sribharat said Railway Minister Ashwini Vaishnaw had confirmed sanction and space allocation at VMRDA’s new building, with a gazette notification expected within two to three months. He also reported positive discussions on Vizag Metro and Rs 3,000 crore in funding.
TDP chief Palla Srinivas reiterated that VSP would not be privatised under the NDA. “While the Centre’s policy allows privatisation of loss-making units, there are precedents where states intervened successfully. Tamil Nadu did this with Salem Steel. Similarly, we will protect Vizag Steel,” he said.
He accused the previous YSRCP government of running the plant at only 20 per cent capacity, pushing it into crisis.
Palla said that both blast furnaces must operate at full capacity. “If the plant maintains 60 per cent capacity and records profits for two years, the Centre will withdraw the privatisation notification,” he explained.