Is the sale of the steel plant in Visakhapatnam on hold? What is the visit purpose of the Union Minister?
It seems like there are several important developments regarding the Visakhapatnam steel plant (Visakha Steel Plant) in Andhra Pradesh. Here are the key points based on your message:
1. Union Steel Minister’s Visit: Union Steel Minister HD Kumaraswamy is indeed visiting Visakhapatnam today. He will be staying at the steel plant and is scheduled to meet with senior officials and labor unions tomorrow.
2. Demand for Withdrawal from Private Investment: There has been criticism and demands from Andhra Pradesh MPs and fans of Visakha Steel regarding withdrawing the plant from private investment.
3. Proposal of Merger with SAIL: The state BJP MPs have proposed merging the Visakha Steel Plant with SAIL (Steel Authority of India Limited) and providing necessary working capital for full-scale production. This proposal is likely to be discussed during the Minister’s visit.
4. Purpose of the Visit: The visit of Union Minister HD Kumaraswamy is possibly in response to recent appeals from BJP MPs of the state and the ongoing demands regarding the future of the steel plant.
These points indicate a significant discussion and potential decisions regarding the future operations and ownership structure of Visakha Steel Plant.
Operating funds or reduced production
Over the past three years, the decision by the Centre to privatize the Visakhapatnam Steel Plant under the guise of disinvestment has sparked significant concerns and protests among employees. Despite operating without adequate funding, the plant has managed to maintain 60 percent of its production capacity. However, machinery worth Rs. 20,000 crores remains idle. Following the shutdown of Blast Furnace-3 in 2022, production has been reduced to two and a half million tonnes annually.
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The sale of the Raibareli forge wheel plant owned by Vizag Steels fetched Rs. 2000 crores but did not prove beneficial. Additionally, attempts to sell 25 acres of prime land in Visakhapatnam for plot development have been halted by a court stay. Recently, there has been a proposal to sell steel stock points, and office buildings in Chennai, Hyderabad, and other cities, totaling Rs. 500 crores.
In this current political landscape, the decision-making of the Modi 3.0 government regarding these developments remains awaited.
In the palanquin of hopes
New optimism surrounds the future of Visakha Steel as Union Steel Minister Kumaraswamy arrives this evening at the steel plant, which has faced challenges including asset sales for operational needs amid prolonged employee protests over salary issues. Tomorrow, senior officials will meet with labor leaders.
As the Union Minister visits under these circumstances, his statements and actions are eagerly anticipated. Observers are particularly interested in the response from SAIL regarding the proposed merger.
