State govt lends support to VSP to bounce back
- Along with the Centre, the state government is pitching in to lend support to the VSP
- Earlier, the Union government announced Rs.11,440 crore as revival package for the VSP
Visakhapatnam: The Central and State governments are working in tandem to bring back the lost glory of Visakhapatnam Steel Plant (VSP) and make sure that it sails through the losses incurred.
The Centre has earlier announced financial assistance of Rs 11,440 crore as revival package to the VSP and sought support of the state government to revive the VSP.Responding to it, Chief Minister N Chandrababu Naidu took a decision in favour of the steel plant and approved to bear the burden of electricity and water charges to the tune of Rs 2,400 crore for the next two years.
The decision made by the Andhra Pradesh government to convert pending power dues amounting Rs 2,400 crore into equity has been hailed by various sections.
Welcoming the decision, Telugu Desam Party (TDP) state president and Gajuwaka MLA Palla Srinivasa Rao lauded the Chief Minister’s farsightedness and commitment towards industrial rejuvenation. “This initiative not only provides financial stability to the plant but also marks a decisive step in the resurgence of Andhra Pradesh’s steel industry,” he mentioned.
The Central and state governments are working in close coordination to restore the plant’s vitality. Of the Rs 11,500 crore revival package, Rs.9,500 crore has been released.
For the plant to reach break-even, production must touch 60 per cent of the capacity which is roughly about 15,000 metric tonnes per day. With the third blast furnace now being operational, production levels are steadily improving at the plant like never before.
In the meantime, the YSRCP leaders are campaigning extensively that the Central government is taking steps towards privatisation of the VSP. Former chief minister and YSRCP chief YS Jagan Mohan Reddy, who visited Narsipatnam recently, interacted with the trade union leaders of the VSP and received a memorandum from them. Earlier, the same group of trade union leaders tried to get Jagan Mohan Reddy’s appointment during the YSRCP’s regime but failed several times. They explained that the VSP was receiving electricity bills of Rs.100 crore per month and were not able to clear them. Earlier, they requested the former CM to permit them to facilitate three-month time to pay the electricity bills, but Jagan had refused.
The VSP union leaders met the then Chief Minister at the Visakhapatnam Airport and highlighted the issues of the VSP and how the management is depriving its employees of paying salaries in time. The NDA government is working towards protecting the VSP from getting privatised and extending all possible measures to reduce its financial burden. As part of it and to reduce the financial cost of the steel plant, the CISF staff was removed and a request was raised to appoint APSPF staff in their place. Responding to it with immediate effect, the state government allotted 167 personnel and the state government is paying salaries of Rs 20 lakh per month.
