The Andhra Pradesh government has taken an unexpected decision for the Visakhapatnam Steel Plant, ahead of Prime Minister Narendra Modi’s visit to the state. The Center announced a financial package for the loss-making steel plant a few months ago. Now, Chief Minister Chandrababu Naidu has taken another decision in terms of finance to provide more relief.
The state government has decided to cancel the two-year dues related to the Visakhapatnam Steel Factory. The Industries Department has issued orders to this effect. Government sources said that this decision has been taken to provide financial support to the Plant in the context of the steel factory facing losses.
According to the latest orders, the state government has canceled electricity dues for two years since August last year. The total value of the canceled dues is stated in the order as Rs 2,400 crore. It was said that this decision was taken on the basis of several requests received from the Visakhapatnam Steel Plant management.
The canceled amount will be transferred as the government’s share in the future. The order stated that this amount will be converted into the state government’s share in Visakhapatnam Steel after 10 years with 7 percent interest. The transfer charges of Rs 753 crore will also be included in this amount.
The government has instructed APEPDCL, the Energy Department and Visakhapatnam Steel Corporation to take necessary steps in this regard. The Union Steel Ministry had previously made some proposals.
On behalf of the Center, they are providing financial assistance of Rs. 11,440 crore to Visakhapatnam Steel, and on behalf of the state, the Steel Ministry has asked the state government to help them in three areas. As part of that, the Steel Department has asked for a waiver of electricity and water bills for three years.
Responding to this, the state government has said that it will provide assistance of Rs. 2,400 crore. Now.. the Steel Ministry has suggested that Visakhapatnam Steel be purchased for all state government projects, which is being examined.
