Around 29 companies have submitted EOIs (Expression of Interest) in the bidding for the Vizag Steel Plant but the Telangana government stayed away. About seven global companies have also expressed interest.
Neither TS nor AP nor the NMDC has expressed interest in the VSP. The EOI released on March 27 invited interested companies to submit bids. The Telangana government through SCCL said that if needed it would bid but it did not participate in the EOI bidding despite the extension of the EOI deadline.
Governments cannot directly participate in EOI (Expression of Interest) bids as only companies are allowed to participate. In this context, there was a huge campaign that if needed the BRS will participate. However, sources in the party said that as SCCL is a PSU it cannot participate as per the rules of the Dipam scheme.
The TSMDC, which can participate doesn’t have viability. BRS sources said, “Neither our party nor our leaders declared that we will participate. We said a team would study and based on that we will act. To invest on this scale, we need board approval and in SCCL we have a 51% share and the Centre has 49%. KTR said that if the Centre is serious about strengthening VSP, then dedicated captive iron ore mines should be allotted to it immediately. Our stand is clear. We oppose VSP privatisation.”
“Now the BJP has started the propaganda that SCCL is in losses. This is their modus operandi or rather Modi’s modus operandi. An organisation which is running fine will be first branded as loss-making and then it will be sold off to Adani or Ambani. Until the decision to privatize VSP is withdrawn and a steel plant is set up in Bayyaram we will continue to increase pressure on the Centre,” BRS sources said.
The VSP requires funds to purchase raw materials and needs working capital for running the company.
The Rashtriya Ispat Nigam Limited (RINL, Visakha Steel) has announced that if any company involved in steel production provides these funds it will supply steel in return. It is known that companies have been asked to submit EOIs.
The VSP has debts of Rs 22,000 crore. They are paying Rs 2200 crore as principal and interest annually. As if this is not enough, the accumulated losses of thousands of crores are crippling the company. In order to get out of this situation, the unions wanted to merge VSP with the SAIL (Steel Authority of India).
