Union Minister for State for Steel Faggan Singh Kulaste in Visakhapatnam on April 13 made it clear that there is no intention of privatising the VSP as of now and the Centre is planning to strengthen Rashtriya Nigam Limited (RINL). However, the Union Minister did not clarify his statement on disinvestment of RINL giving scope for doubts. The Steel Ministry on Friday clarified that the disinvestment process of RINL would continue.
In a new twist to the privatisation of Visakhapatnam Steel Plant (VSP), the Ministry of Steel has made it clear that it will go ahead with the disinvestment.
Clarifying some media reports on putting the disinvestment process of the state-owned steel maker on the hold, the Ministry, in a statement, said that the process is in progress. “There is no freeze on the disinvestment process of RINL,” the statement said. However, efforts are being made by the company to improve the performance of RINL, it added.
Under the Ministry of Steel, Rashtriya Ispat Nigam owns and operates a steel plant with an annual capacity of about 7 million tonnes (MT) located at Visakhapatnam in Andhra Pradesh.
RINL’s Vizag Steel Plant is the country’s first shore-based plant where the company manufactures various special products. The Cabinet Committee on Economic Affairs (CCEA) on January 27, 2021, gave its ‘in-principle’ approval for 100 percent disinvestment of the government stake in RINL, also called Visakhapatnam Steel Plant or Vizag Steel, along with RINL’s stake in its subsidiaries/joint ventures through strategic disinvestment by way of privatisation.
It may be mentioned here that Union Minister for State for Steel Faggan Singh Kulaste in Visakhapatnam on April 13 made it clear that there is no intention of privatising the VSP as of now and the Centre is planning to strengthen Rashtriya Nigam Limited (RINL). However, the Union Minister did not clarify his statement on disinvestment of RINL giving scope for doubts. The Steel Ministry on Friday clarified that the disinvestment process of RINL would continue.
Meanwhile, in protest against the Union Steel Minister’s decision, the steel plant workers staged a dharna at Kurmannapalem centre in Visakhapatnam on Friday. They burnt the effigy of the Central government. The agitating workers vowed to go to any extent opposing the disinvestment of VSP. The agitating workers took strong exception to the Steel Minister taking ‘U’ turn on the privatisation issue.
In a swift reaction, CPI State secretary K Ramakrishna demanded that the Jagan Reddy government convene an all- party meeting to discuss the VSP issue. Though the Centre is playing games on the VSP privatisation, the State government remained a mute spectator, Ramakrishna slammed.
The Steel Minister’s statement indicated that it deceived the people of AP. Chief Minister Jagan Mohan Reddy should invite leaders of all political parties and unions to discuss the issue, he demanded.
The Union Steel Minister’s statement of putting on hold the disinvestment of VSP led the political parties to claim the credit. The BRS of Telangana State claimed that because of Telangana government’s attempt to participate in bidding through Singareni Collieries, the Centre put on hold the disinvestment process. The YSRCP leaders and the Minister strongly opposed the BRS leaders’ claim and launched a scathing attack on them.
Jana Sena Party chief K Pawan Kalyan said that the Visakhapatnam Steel Plant (VSP) should be under the control of the Central government and termed the Union Minister for State for Steel Faggan Singh Kulaste’s statement as encouraging.
