Centre’s package for VSP is inadequate says Amarnath

Visakhapatnam : The YSRCP leaders on Saturday said that the financial package announced by the Centre for the revival of the Visakhapatnam Steel Plant is insufficient. Former IT Minister Gudivada Amarnath said that the steel plant, which has been operating under severe financial stress, requires sustainable solutions, and the package announced by the Central government is inadequate to iron out its core issues.

He criticised the Centre’s handling of the Visakhapatnam Steel Plant (VSP) issue, emphasising that YSRCP has consistently opposed privatisation of the VSP under the leadership of former Chief Minister YS Jagan Mohan Reddy.

Amarnath recalled that it was due to YSRCP’s steadfast opposition that the privatisation process was halted, a fact acknowledged by Union Minister HD Kumaraswamy himself. He said that the Andhra Pradesh Assembly had passed a resolution opposing privatisation.

Raising concerns over the financial package announced by the Centre, Amarnath said it falls short of expectations and clarity and demanded transparency regarding the government’s intention. He accused the Centre for failing to withdraw its privatisation decision despite claiming to support the plant, leaving the employees and the public in confusion. The former minister expressed alarm over the plant’s current state, stating that it is burdened with mounting debts and a dwindling workforce, especially after the introduction of Voluntary Retirement Schemes (VRS).

Amarnath criticised past mismanagement, including the failure to pay employee salaries on time, removal of allowances, and the misuse of Provident Fund (PF) contributions. He demanded that the Central government take decisive steps to ensure the plant’s survival.

The YSRCP leader called for a tax holiday for the plant, its merger with the Steel Authority of India Limited (SAIL), allocation of captive mines for raw material self-sufficiency, and the transfer of plant lands.

He accused the Central government of taking a shortsighted approach and failing to provide genuine solutions to adopt a sustainable strategy to revive the steel plant.