Govt rules out VSP privatisation
Amaravati: After an internal circular issued by the management of Visakhapatnam Steel Plant (VSP) reportedly linking payment of full salaries to full realisation of production targets triggered unrest among the employees, the Andhra Pradesh government on Monday reiterated that VSP will not be privatised and asserted that the unit, while remaining in the public sector, would move toward long-term operational revival. The state government averred that it is confident of strengthening the plant with coordinated support from the NDA government at the Centre.
According to the government, the Centre and the state have together extended financial assistance of Rs 15,000 crore to the steel plant during the past 17 months, after the NDA coalition government assumed office. Officials stated that the capacity-utilisation rate increased from 48 per cent to 79 per cent during the same period, describing the support as unprecedented, compared to any other public sector entity in India.
The announcement by the state government seeks to dispel the unrest triggered by the internal circular, which trade unions say links employee salary payouts to production levels. Representatives of the plant’s unions, however, maintain that the communication indicates a shift in policy, under which full salaries would be paid only if the plant achieves 100 per cent of the stipulated production target. Trade unions have expressed strong objections to the perceived change in policy, claiming that such a shift would penalise workers even for operational issues outside their control, including inadequate availability of raw materials and recurring technical disruptions. They argue that production goals are “unrealistic under current resource conditions”, and therefore the proposed mechanism for revising salary as per production targets would cause financial loss to employees. The unions have called for a siege of the plant’s administrative office, demanding withdrawal of the new policy and assurance of wage protection.