The Bharat Rashtra Samithi (BRS) seems to have made the proposed privatisation of Vizag Steel Plant the hook to expand its base in neighbouring Andhra Pradesh. BRS working president Kalvakuntla Taraka Rama Rao not only wrote an open letter to the Centre opposing the privatisation of the plant, but the Telangana government is also mulling participating in an Expression of Interest through its Singareni Collieries Company Limited. For this purpose, they have sent a team of officials to the plant to study relevant issues.
Heavy metal
In the letter, KTR wrote that an Expression of Interest (EoI) notification was issued in the garb of mobilising funds for working capital and raw materials. He said that the Narendra Modi government was indirectly attempting to hand over the PSU to private entities through the notification. The Telangana IT minister demanded that the Centre should immediately cancel the EoI notification.
The minister in his letter laid out a detailed plan to revive the PSU. He said that Steel Authority of India Limited (SAIL) has already announced its expansion plans with a cost of around Rs 1 lakh crore. He said that the company can be merged with the Vizag Steel Plant, which has several advantages when compared to selling the steel plant to private companies at a low price. “This will contribute towards SAIL’s expansion goals. If the company moves in this direction, then an ecosystem can be created to fulfil a longstanding demand of a steel factory in Bayyaram, Telangana, and a steel plant in Kadapa,” said KTR.
The minister also opposed the central government’s veiled attempts to privatise Singareni Collieries Company Limited (SCCL). Maha dharnas were held against the Centre’s decision to auction SCCL’s coal mines on April 8. Stating that the Centre issued a notification to auction the mines in Sathupalli Block 3, Shravan Palli, Penagadapa, KTR demanded that the auctioning process, which was scheduled to be conducted from March 29 to May 30, be rolled back.
From the past
The decision to privatise Vizag Steel Plant was taken by the Cabinet Committee on Economic Affairs in January 2021. It cited huge losses made over the years as the reason behind the move. Visakhapatnam Steel Plant (Rashtriya Ispat Nigam Limited) is a Navaratna PSE under the ministry of steel. It is the largest, single-location, shore-based steel plant in the country.
After the announcement, the employees of the plant started an agitation against the privatisation. Visakha Ukku Parirakshana Porata Committee was formed to carry on the protests and till now, they have successfully held back the privatisation of the plant.
Andhra Pradesh chief minister YS Jagan Mohan Reddy had extended his full support to the stir at that time. He also took up the matter with the Prime Minister. However, the matter was left in the cold storage till BRS stirred the pot.
Political sense
This is not the first time KTR has shown support for the agitating employees of VSP. In 2021, the workers had performed a milk abhishekam on KTR’s photo when he had supported their agitation. This time too, Visakhapatnam Ukku Parirakshana Porata Committee chairman Ch Narasinga Rao has welcomed the delegation sent from Telangana to study the feasibility of an Expression of Interest.
The move has triggered a war of words in both the Telugu states. Responding to KTR’s letter, Telangana BJP president Bandi Sanjay Kumar said, “It is ridiculous that the chief minister who cannot pay salaries to his government employees on the first day of the month and implement his promises of waiving crop loans and unemployment allowance is talking about bidding for the Visakhapatnam Steel Plant. Forget Visakhapatnam Steel Plant, first KCR should fulfil his promise of establishing the Bayyaram Steel Plant in Khammam and providing jobs to 20,000 people.”
In retaliation, KTR said that steel plants can be set up in both Telangana and Andhra Pradesh if Bailadila is freed from the clutches of the Adani Group. “Bailadila is at a distance of 150 km from Bayyaram and 600 km from VSP. It has 134 crore metric tons of iron ore. It is the nucleus of both the steel plants,” the minister added.
Andhra Pradesh industries minister Gudivada Amarnath maintained that YSRCP is opposed to the privatisation of the plant. “There is no official statement from the Telangana government,” he said.
Political experts feel that stirring up the issue is a masterstroke by the BRS. It is an emotive issue, and KTR has evoked Telugu pride through his statements. The move also makes Andhra CM Jagan Mohan Reddy lose face as he is being accused of being silent on the matter. The BRS is aiming to split the anti-incumbent votes by raising the subject. BRS has also appointed Thota Chandrasekhar, a leader from the Kapu community, as its Andhra Pradesh president. This community has a strong presence in the state.
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