Drop Visakhapatnam Steel Plant disinvestment plan, demands Konathala Ramakrishna

In a letter written to Union Minister, Konathala Ramakrishna requested that VSP be provided with captive mines for its own production.

Published: 09th April 2018 04:53 AM  |   Last Updated: 09th April 2018 04:53 AM   |  A+A-

By Express News Service

VIJAYAWADA: Former minister and MP Konathala Ramakrishna has requested Union Minister for Steel Chaudhary Birender Singh to withdraw the proposal of disinvestment from Visakhapatnam Steel Plant (VSP) and warned that the mood in the region is highly emotional and the people are prepared to make any sacrifice to protect the PSU.

In a letter written to Union Minister, Konathala Ramakrishna requested that VSP be provided with captive mines for its own production.

He said VSP, which produces 6.3 million tonnes annually, is regarded as the best steel plant in the country producing the best steel in a highly consistent manner.

Recalling the movement in the State with the famous slogan ‘Visakha Ukku - Andhrula Hakku’ that saw the establishment of one of the finest PSUs in the country, the former MP said 30,000 people were directly employed while another 70,000 found indirect employment. “A company of this magnitude, stature, calibre and potential should be nurtured further,” he stressed.

He said since VSP does not have captive mines, it is spending 55 per cent of the production cost for purchase of raw material.

Those having captive mines are spending only 20 per cent in this regard. “Instead of aiding the company by providing it with captive mines, the NDA government has taken up the disinvestment proposal by pointing at the losses. We hate to make any allegation, but speculation is rife across the State that the disinvestment proposal is backed by a hidden agenda,” he said. He said the total investment by the Centre in VSP stands at Rs 4,890 crore.

In agitation mode
The highly suspicious and meaningless disinvestment proposal should be dropped
Allot captive mines to RINL-VSP immediately
Grant statutory permission to RINL to excavate iron ore mines belonging to OMDC wherein RINL has invested Rs 360 crore
Expedite the proposed merger of NMDC with RINL-VSP apart from speeding up formation of joint venture of RINL and NMDC for mining iron ore deposits in Kukunoor of West Godavari district of Andhra Pradesh
Initiate next level of expansion to 10-million ton capacity with modernisation


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