'100% disinvestment of shares': Centre reiterates its stand on Visakhapatnam Steel Plant

The government also made it clear that it will address the legitimate concerns of the existing steel plant employees and other stakeholders during disinvestment. 
Finance Minister Nirmala Sitharaman (Photo | EPS)
Finance Minister Nirmala Sitharaman (Photo | EPS)

VISAKHAPATNAM:  The Centre has once again reiterated that it will go for 100 per cent disinvestment of Government of India’s shares in Visakhapatnam Steel Plant (VSP), which triggered protests in Vizag. The government also made it clear that it will address the legitimate concerns of the existing steel plant employees and other stakeholders during disinvestment. 

Union Finance Minister Nirmala Sitharaman, in reply to queries of Vizag MP MVV Satyanarayana and Araku MP G Madhavi in the Lok Sabha on Monday, said the Cabinet Committee of Economic Affairs accorded approval in January for 100 per cent  disinvestment of government shareholding in Rashtriya Ispat Nigam Limited (RINL), corporate entity of VSP, and also for withdrawal of RINL’s stakes in joint ventures through strategic disinvestment. 

“While deciding conditions for strategic sale of RINL, concerns of employees and other stakeholders will be suitably addressed through share purchase agreement,’’ she said.  She also said the AP State government does not have any equity in Rashtriya Ispat Nigam Limited.  The Andhra Pradesh State government is consulted in specific matters as and when needed and its support is also solicited in the matters that require its intervention, she said. 

The Finance Minister’s statement assumes significance in the wake of a series of protests against Visakhapatnam Steel Plant privatisation, including a State bandh on March 5.  Meanwhile, the Vizag Steel Plant Parirakshana Committee staged a rasta roko at Kurmannapalem in the city. Due to the protest, traffic was paralysed for over 2 km on both sides of the national highway. Meanwhile, Municipal Administration Minister Botcha Satyanarayana said the State government is doing its best to save the steel plant from privatisation. 

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