VSP hopes soar as Naidu knocks on fin min’s door

Visakhapatnam: The Centre is expected to make a favourable decision regarding Vizag Steel Plant (VSP) after the Prime Minister's Office (PMO) reportedly suggested that the Ministry of Steel and Andhra Pradesh chief minister N Chandrababu Naidu discuss the matter with the ministry of finance to resolve the issue of the proposed merger between Steel Authority of India Limited (SAIL) and VSP.The CM, who is committed to protecting the plant as part of his party's election promise, will advocate for the revival of VSP during his visit to New Delhi. The chief minister has been reiterating that his party would protect Vizag Steel Plant.The central govt's decision to implement a disinvestment policy in Vizag Steel Plant has been met with protests from workers' unions for the past four years. On Tuesday, the CM is scheduled to meet Union finance secretary to discuss the steel plant merger or financial aid. While the finance department has argued that a PSU cannot be merged with another PSU as a matter of policy, trade unions and experts contend that if the Constitution can be amended multiple times, why can't policies be changed for the betterment of industry. India's iron and steel sector comprises three central public sector enterprises (CPSEs) — Steel Authority of India Limited (SAIL), Rashtriya Ispat Nigam Limited (RINL or VSP), and National Minerals Development Corporation (NMDC).Sagi Kasi Viswanatha Raju, a director at SAIL, told TOI that this merger would offer advantages such as economies of scale in operations, rationalisation of resources, marketing synergy and faster growth.VSP has been facing financial losses and a severe liquidity crisis, hindering its ability to procure raw materials. CM has been reiterating that TDP would protect steel plant
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