Privatisation of the Visakhapatnam Steel Plant, a major industrial centre in Andhra Pradesh, has again become a burning issue. The centre has been making gradual progress with its privatisation plans, brushing aside stern opposition from workers and people in the region. The Voluntary Retirement Scheme (VRS) was recently implemented, and 1,140 workers availed themselves of early retirement during the initial phase.
Even as protests broke out in Visakhapatnam and elsewhere against the move of privatization, the process has remained uninterrupted so far. In the period of previous Chief Minister Y.S. Jagan Mohan Reddy, the state government had managed to stall these moves. But now with a change in government, the situation is shifting very quickly.
The new Andhra Pradesh coalition government, with Chief Minister N. Chandrababu Naidu and Deputy Chief Minister Pawan Kalyan heading it on behalf of the Telugu Desam Party (TDP), Jana Sena, and Bharatiya Janata Party (BJP) is now ruling. With this alignment at the center, the government’s efforts at privatization are said to be picking up momentum with added urgency for speedily concluding the process.
In the midst of these developments, Union Minister of State for Steel Bhupathiraju Srinivasa Varma recently met Chief Minister Chandrababu Naidu to talk about the future of the steel plant. The high-level meeting also involved senior officials like Steel Secretary Sandeep Poundrik, Joint Secretary Abhijit Narendra, NMDC MD Amitava Mukherjee, Visakhapatnam Steel Plant In-Charge CMD Ajit Kumar Saxena, MECON CMD S.K. Varma, and MSTC CMD Manobendra Ghosal.
Chief Minister Naidu inquired about the central government’s approach to the revival and sustainability of the plant during the discussions. Government officials gave an overview of the steps being contemplated in order to make the steel plant stronger and shielded. It is being reported that the Union Minister indicated a possible package of funds to enable restructuring of the plant and enhance its operations.
In contrast to rumors, the Union Minister apparently guaranteed that there are no proposals for privatization finalized yet. According to him, currently there are no short-term plans for selling the steel plant.
On his part, Chief Minister Chandrababu Naidu stressed the need to expand and modernize the plant. He also promised the central government of Andhra Pradesh’s complete cooperation in making the Visakhapatnam Steel Plant stable in the long term and financially strong.
Although official assurances indicate no direct privatization on the horizon, the growing involvement of the federal government leaves doubt about the facility’s long-term prospects. As talks are discussed and financial options are weighed, stakeholders are paying close attention to how events are likely to proceed in the months ahead.
