BRS will resist Vizag Steel Plant privatization: Telangana Minister KTR
Hyderabad (2April) : KTR has made it clear that whether it is for the farmers across the country, for the people of Telangana or for the people of the neighboring state of Andhra Pradesh, he stands by them in all their sorrows and troubles to get justice. Regarding the Vizag steel plant, KTR said that he and his party BRS would oppose privatization. He said that the Telugu people have the right over the steel plant and the onus is on us to save the steel plant.
BRS Party support to the employees of Vizag Steel Plant, the party’s working president K.T. Rama Rao reiterated that BRS will resist the Central Government’s move to privatize the steel plant. In an open letter to the Central government, KTR detailed the evil plans of Modi government to hand over the VSP to private players, the reasons behind steel plant incurring losses, and the ways in which the plant could be revived.
The Minister said that as part of the conspiracy to privatize the steel plant, VSP will be pushed into losses and the crisis will be shown as an excuse to hand it over to crony corporate companies. KTR said that the central government did not allow the special iron ore mines to the steel plant. Due to this, he said, the steel plant is forced to spend up to 60% of its production cost on raw material. On the other hand, the cost of raw materials in private companies production is less than 40% as iron ore, coal and other mines were allotted to them. BRS Working President said that VSP, which is forced to spend huge amounts on raw materials, is facing challenges as it is competing with private corporate companies in the market in terms of production. It is facing losses as the enterprise has to sell at the same price as them in the market.
Minister KTR said that the enterprise is in distress as coking coal has to be imported, and iron raw materials needed for steel production are being bought at market rate from NMDC. “Due to this, more than 50% of production had to be stopped for a year. All of this is part of a conspiracy to push the Vizag Steel Plant into losses and use it as an excuse to privatize the steel plant. PM Modi written off loans worth Rs. 12.5 lakh crores for his corporate friends. Why is he not showing the same generosity on the Vizag steel plant?” KTR questioned.
KTR said that the Modi government was indirectly attempting to handover the PSU to private entities through the notification. Minister demanded that the center 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 fulfill a long standing demand of a steel factory in Bayyaram, Telangana and a steel plant in Kadapa,” said KTR
Maintaining that the centre should stop conspiring to privatise a PSU which has Rs.1.5 lakh crore worth assets, KTR demanded that the Modi government should extend Rs. 5,000 crore financial assistance to the steel plant. KTR reminded that earlier when the Vizag steel plant faced a financial crisis, Prime Ministers PV Narasimha Rao and Atal Bihari Vajpayee bailed out the PSU by extending financial support. He also suggested the central government purchase steel from VSP for the large scale infrastructure projects in the country and pay the money in advance.
“The Vizag steel plant is allowed for loan monetization up to Rs. 25,000 crores only. However, private companies having the same amount of assets as that of the Vizag Steel Plant are allowed to raise loans up to Rs. 70,000 crores-Rs 80,000 crores.” Minister added.
BRS Working President KTR also directed the BRS AP unit President Thota Chandrashekar to extend solidarity to the workers of the steel plant. “Vizag steel is the right of Telugu people and the responsibility is on us to save the steel plant,” KTR remarked.
