AP Government passed a resolution opposing the privatisation of VSP

Going against the Central Government’s decision of privatising the Rashtriya Ispat Nigam Limited (RINL) – Vizag Steel Plant (VSP), the Andhra Pradesh State Government passed a resolution opposing it. On Thursday 20 May 2021, the Andhra Pradesh Legislative Cabinet, led by the Minister of Industries, Mekapati Gautam Reddy, passed the resolution unanimously to oppose the privatisation of VSP.

Speaking for the resolution, the Minister said it was of utmost importance to protect the crest jewel and the pride of the Telugu speaking state of Andhra Pradesh. On this note, the State Government deliberated viable and alternative solutions to help address the issue of huge losses being incurred by the VSP. Addressing the elephant in the room, the industries minister said that a high-level meeting was held on 23 February 2021, only to ponder upon the unrest among the trade unions and general people of Visakhapatnam. Mr Reddy also added that the sensitivity of the issue and widespread agitation by the trade unions are a cause of concern for the State Government. The government is making its best efforts to protect the interests of every community. Mr Reddy also brought up the State’s attempts in this endeavour through a detailed letter requesting reconsideration of the proposal on, presented by CM Y.S Jagan Mohan Reddy, to the Prime Minister.

Earlier in the year, several protests and state-wide bandhs by various trade unions were held in a steadfast manner to keep the Cabinet Committee on Economic Affairs (CCEA) decision at bay. The decision of the CCEA in this regard was towards a 100% strategic disinvestment of the holdings in VSP by the Government of India. Along with the disinvestment, a sincere attempt in conceding managerial control by way of privatisation was also on the cards. This didn’t go well with the people of Andhra Pradesh hence the resolution opposing the privatisation of VSP was passed.

Adding an empathic remark to the state-led resolution, the minister also spoke about the glory and grandeur the Visakhapatnam Steel Plant had got all along since 1989-90. He was also in consideration of the huge unemployment that VSP privatisation would bring about.

The Visakhapatnam Steel Plant currently has 16,000 permanent employees and around 15,000 contract workers. The industry also has around 70,000 people indirectly employed. Speaking on the achievements of the RINL, the industries Minister quoted that the plant had reached an all-time high-capacity utilization of 7.3 MTPA since December 2020. Blaming the central government’s mismanagement in the past, Mr Reddy requested the Centre to allocate iron ores in Orissa to reduce the input costs.

With structured management, and with an aim to turn RINL into a profit-making entity, the Industry minister promised that the State Government would take all measures to support the interests of the employees and people of Andhra Pradesh at large.