Visakhapatnam: Strategic sale of VSP takes a fresh twist

Visakhapatnam: With the statement by Union minister of state for steel and Rural Development Faggan Singh Kulaste on Centre not moving ahead with privatisation at the moment and that it now focuses a great deal on strengthening Rashtriya Ispat Nigam Limited (RINL), the strategic sale move of Visakhapatnam Steel Plant (VSP) has taken a new twist.

At a time when trade union leaders and Ukku agitators were trying to heave a sigh of relief and almost on the verge of breaking into a celebration mode, the Union minister poured cold water on their aspirations after a few hours 'rephrasing' his statement.

In the morning, when media persons asked him about the privatisation move, Faggan Singh Kulaste made it clear, "The Centre is not taking any new step towards privatisation of VSP at the moment and it will not go ahead with the move for the 'time being'. However, the focus is on strengthening Rashtriya Ispat Nigam Limited, even if it means initiating new wings for the company."

Also, the Union minister said that discussions will be held with trade unions to look into the possibilities of resolving the issue of own captive mines.

Meanwhile, following the Union minister's statement, Telangana IT minister K Taraka Rama Rao claimed that such major change in the Centre came in the wake of BRS's involvement in participating in the bidding to raise working capital for the VSP through Singareni Collieries.

Refusing the credit passing into the account of the BRS, ruling party leaders in Andhra Pradesh questioned the BRS leaders how such a brake from the Centre is not being applied in Telangana state and is confined only to VSP.

Later, the Union minister clarified with the representatives of Visakha Ukku Parirakshana Porata Committee stating that the privatisation move is the decision taken by the Cabinet and that there is nothing much he could do about it.

"However, the challenges shared in the meeting would be taken to the notice of the Centre," he assured them.

A group of trade union leaders approached Faggan Singh Kulaste and appealed to him that the Centre should prevent private companies from participating in the bidding towards Expression of Interest. In case the private players get into the picture, they expressed concern that it would gravely impact the brand image of the VSP which remains to be the pride of Andhra people and came into existence following several sacrifices.