The Andhra Pradesh government has no equity in the Visakhapatnam steel plant, the Union government stated in a written response to YSRCP MP MVV Satyanarayana at the Lok Sabha on Monday. The response comes days after a statewide bandh was held on March 5 protesting the decision of the Union government to privatise the Public Sector Unit (PSU).
Union Finance Minister Nirmala Sitharaman in a written reply to the Visakhapatnam MP said the Cabinet Committee of Economic Affairs (CCEA) has approved 100% disinvestment of government holdings in Rashtriya Ispat Nigam Limited (RINL) also known as Visakhapatnam Steel Plant or Vizag Steel Plant. The state has no equity in the steel plant and is only consulted in specific matters as and when needed, wrote the minister, responding to a question on whether the Government intends to provide support to Andhra Pradesh for the due revival of the steel plant.
“Strategic disinvestment of the government of India’s equity will lead to an infusion of capital for optimum utilisation, expansion of capacity, infusion of technology and better management practices. This will result in higher production and productivity and expansion of direct and indirect employment opportunities,” wrote the minister responding to concerns about the impact of privatisation on stakeholders, employees.
The minister assured that while deciding the terms and condition of the strategic sale, legitimate concerns of the existing employees and other stakeholders will be suitably addressed.
The privatisation of the steel plant has become a political issue in the state, in which all parties, barring the BJP, are not in favour of privatisation. Andhra Pradesh Chief Minister YS Jagan Mohan Reddy has reportedly even suggested alternate ways to revive the steel plant that has raked up Rs 22,000 crore debt.
Earlier on March 4, with hopes to raise funds, RINL signed an MoU with National Buildings Construction Corporation Limited (NBCC) for redevelopment and monetisation of its 22.19 acres of land in Visakhapatnam.