VISAKHAPATNAM: Thursday’s meeting of South Korean steel giant POSCO top brass with Chief Minister YS Jagan Mohan Reddy at Tadepalli triggered widespread resentment among Vizag steel plant employees and unions, who are vehemently opposing the entry of the company since the proposal was made almost a year ago.Steel plant employees’ unions and other trade unions have decided to go on a one-day strike on November 26.
They demanded that the State government make its stand clear whether it was opposing or supporting POSCO.Steel plant employees recognised union president J Ayodhya Ram told TNIE that Vizag Steel is pride of AP and it was realised after protracted struggle by the people of the State. “We will not let the plant slip into private hands. The plant, since its inception, has paid over `42,000 crore as taxes to both the State and Centre. Even people of the State will raise their voice against POSCO,” he hoped.
The South Korean company, after shelving its plan to set up a plant at Jagatsinghpur in Odisha, has stepped up efforts to set up a high-end steel plant in a joint venture with the RINL. An MoU was signed in July and a joint working group was formed. The POSCO also sought 1,170 acres of Vizag Steel’s surplus land for setting up the plant.
D Adinarayana, AITUC State secretary, said the expansion plan of RINL to produce 20 million tonnes will hit a roadblock if the POSCO is allowed to set up its unit here. “The move will hit hard employees and people of the region and the navratna company will lose its identity and integrity. Even captive mines were not given to the RINL (Rashtriya Ispat Nigam Ltd), and the plant managed to come out of the BIFR and later achieved a turnaround. It was not a wise step to privatise the steel plant now,” he opined.
Ayodhya Ram said the South Korean company has been trying to get a foothold in the country so as to supply steel to Southeastern Asian countries. He said if POSCO was allowed to set up the plant, further expansion of the Vizag steel plant will be affected. The RINL, a Navaratna company, has been trying to expand the plant capacity by 20 million tonnes by the end of 2030.
The RINL has already given 400 acres of land to Gangavaram port. He said they organised a big rally in Amaravati in December against the POSCO project. “We have technology and resources and a full-fledged infrastructure and if the South Korean company is allowed to enter, it will take over the entire plant. We will fight till the end for protecting the Vizag steel plant,” Ayodhya Ram stressed.
He said all employees of the steel plant were opposing the entry of POSCO. He was sure that people would join their struggle. “The State government should reveal what transpired between the POSCO delegation and Chief Minister Jagan Mohan Reddy.
If the government supports POSCO, it will be detrimental to the interests of the State and its people,” he claimed. The employees will serve notice for a one-day strike on November 26. “Depending on the government’s action, we will chalk out further action,” Ayodhya Ram said, adding that all trade unions will stage a dharna on Saturday against POSCO.