Heavy losses in the public sector is forcing the Central Government to hasten the disinvestments. Now, the Modi regime has set a one and half year deadline to totally privatise the Visakha Steel Plant. This is despite the rising agitation and also AP CM Jaganmohan Reddy’s letter to the Prime Minister seeking withdrawal of the privatisation plan. The Centre is moving ahead with disinvestment of Visakha Plant considering its high prospects to attract potential investors.
The steel plant property is currently of high value. It has got over 19,700 acres whose value itself would reach anywhere around Rs. 1 lakh Cr. Over 20,000 permanent employees were depending on it for their livelihoods. Thousands of others are getting indirect employment.
In his letter, Jagan Reddy told the PM that the Visakha Steel was a project that the Andhras had fought and achieved after a decade-long agitation. The steel plant has no iron ore mines of its own. If the Centre extends support in such matters, the Visakha Steel would have huge scope for better performance.
On the other hand, the Modi Government is seriously pursuing the disinvestment considering the increasing losses in the public sector steel companies. It also has plans to privatise the Steel Authority of India Ltd (SAIL) but it is put on hold temporarily.
