Visakhapatnam: The proposed privatisation of the Rashtriya Ispat Nigam Ltd, also known as Vizag steel plant (RINL-VSP), has become a contentious issue among political parties in Visakhapatnam, each trying to capitalise on it for electoral gains in the upcoming polls.
The cabinet committee on economic affairs in its meeting held in January 2021 approved in principle for 100% strategic disinvestment of the government’s shareholding in VSP.
With TDP forming an alliance with BJP for the 2024 elections, YSRCP is attempting to corner the opposition. The ruling party is demanding that TDP clarify their position on VSP privatisation.
On the other hand, the TDP claims that it will ensure the plant continues to operate in the public sector and accuses YSRCP of not attempting to stop the privatization.
Considering that more than 12,000 employees work at the plant, and thousands more rely on allied industries and businesses, the votes of these families will be crucial in both the Vizag Lok Sabha and the Gajuwaka assembly segment.
In addition to YSRCP and TDP candidates vying for Gajuwaka, the CPM, which enjoys the support of various trade and employee unions in the Gajuwaka area, has also entered the contest for the Gajuwaka assembly segment.
The Union government recently clarified that no expression of interest has been issued for the strategic sale of RINL. It was also informed that the government has mandated that the strategic disinvestment of RINL takes into consideration various aspects, including the timing of disinvestment, pricing, terms and conditions of the sale, and the inclusion (or exclusion) of non-core assets, mines, subsidiaries, units, and stakes in joint ventures in the transaction.
Trade and employee unions, under the banner of the Visakha Ukku Parirakshana Porata Committee, have been on a warpath for more than 1,100 days ever since the announcement of VSP’s privatisation.
Meanwhile, some industry insiders and intellectuals suggest that since VSP was under SAIL until 1982, it could be brought under its special funding scheme, especially since VSP has no captive mines.
State education minister Botcha Satyanarayana said that since TDP has joined forces with BJP, which proposed the privatisation, TDP should declare its position on VSP privatisation. “Otherwise, the people of Visakhapatnam should not allow them to campaign in the city. The steel plant is the result of the people’s struggles and the sacrifices of many lives. We will not permit its privatisation,” said Satyanarayana.
However, TDP president N Chandrababu Naidu, during a public meeting held in Gajuwaka on Sunday, criticised the YSRCP govt for not leading the protest against VSP privatisation from the front.
“Immediately after the elections, I will lead a delegation of alliance partners to New Delhi and ensure that the Centre retracts the proposal,” said Naidu.
J Ayodhyaram, convener of the Visakha Ukku Parirakshana Porata Committee, said that they have been opposing the privatisation for the last 1,200 days. “Regardless of who wins the election, our ultimate goal is to ensure that the plant remains in the public sector,” Ayodhyaram added.
J Umamaheswara Rao is a special correspondent, at the Times of In...
Read MoreJ Umamaheswara Rao is a special correspondent, at the Times of India-Visakhapatnam. He covers developments related to the GVMC/VMRDA, education, health, science, IT, tech and startups, research studies, and data-related stories. He holds two postgraduate degrees, one in journalism and mass communication and another one in business administration, apart from completing several short-term courses and fellowships.
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