A day after the Union government reiterated its stance on the privatisation of the Visakha steel plant and said that the Andhra Pradesh government has no equity in the plant, Chief Minister Jagan has written to Prime Minister Narendra Modi seeking an appointment to discuss the matter. Writing to the PM for a second time with suggestions to revive the steel plant without disinvestment, Jagan has sought an appointment to bring an all-party delegation, including representatives of trade unions, to represent “directly the concerns being expressed by the people of Andhra Pradesh, employees and various stakeholders.”
On Monday, Union Finance Minister Nirmala Sitharaman said that the state has no equity in the steel plant and is only consulted in specific matters as and when needed, in a written response to YSRCP MP MVV Satyanarayana who raised the issue in the Lok Sabha. The Finance Minister was responding to a question on whether the Union government intends to provide support to Andhra Pradesh for the due revival of the steel plant.
There has been sustained opposition to the decision to privatise the Visakhapatnam steel plant from trade unions, and various political parties, including the ruling YSRCP and the opposition TDP. A statewide bandh was observed on March 5, protesting the Union government’s decision to privatise the Public Sector Unit (PSU).
Jagan restated suggestions made in his earlier letter to the PM to revive the plant and turn it into a profitable venture, mainly through measures like allotting captive iron ore mines to bring down input costs, financial restructuring by swapping high-cost debt with low-cost debt, and monetising land to make the company “cash rich”.
While the YSRCP has backed the protests against the steel plant’s privatisation, the TDP has accused the Jagan government of "playing a dubious role" and not putting pressure on the Union government to stall the privatisation.