Telangana govt’s proposed bid for Vizag Steel Plant baseless, says Gudivada

The IT minister reiterated that the State government was against strategic disinvestment of the plant.
Vizag steel plant
Vizag steel plant

VIJAYAWADA:  A day after reports emerged that Telangana government was bidding for acquisition of Visakhaptanam Steel Plant, Andhra Pradesh Industries Minister Gudivada Amarnath termed them baseless. Responding to the reports that the BRS government might join the bidding process to acquire the VSP, Gudivada said on Monday, “We have not come across any official statement in this regard from the Telangana government till now.” 

Gudivada further went on to say that BRS’ stand lacks clarity. “Telangana Chief Minister K Chandrasekhar Rao had opposed privatisation of the plant tooth and nail. How can he acquire the same? Does this mean the BRS wants the plant to be privatised?’’ he questioned. The minister said that the Telangana govt would make its stand clear once the BRS makes an official announcement on the acquisition.

The IT minister reiterated that the State government was against strategic disinvestment of the plant. “We are fighting to save the Visakha Ukku - Andhrula Hakku sentiment and have also extended our support to the agitating employees unions. We want the Centre to run the plant. We have even passed a resolution in the State Assembly and have written letters to Prime Minister Narendra Modi thrice on our stand,” Gudivada elaborated.   

Meanwhile, BJP state general secretary PVN Madhav said KCR should tender an unconditional apology to the people of Andhra Pradesh and then only think of running his party in the State. “KCR has not uttered a word about Bayyaram Steel Plant in Telangana till now. He went to the extent of announcing that he would privatise the RTC there. He should stop this political gimmick,’’ he said. On the other hand, BRS leader Jagan Murari said the Telangana government would participate in bidding invited by the RINL. 

TS govt’s initiative will give fillip to 780-day-old stir: Porata panel chief   

“Telangana government has taken the decision following suggestions by former CBI JD VV Lakshminarayana,’’ said Jagan Murari adding that KCR had taken the decision after discussing with his government officials. Meanwhile, the BRS government’s interest to submit an   Express of Interest (EoI) received an overwhelming response from the steel plant employees. 

The RINL had invited bids to partner with companies having interests in steel and steel-making raw materials and business proposals for the supply of steel from RINL on March 27. However, there is no clarity whether the Telangana government will qualify for the bids invited by the RINL. 

According to EoI, potential partner may participate by way of supplying one or more key raw materials such as coking coal, iron ore and in turn take steel products under mutually agreed terms and conditions. 

Steel Executives Association president Katam Chandra Rao said that they requested the Telangana government to explore the possibility of participating in the EoI by way of supplying coal required for the plant. He said that Telangana IT minister KT Rama Rao expressed willingness to come to the rescue of the steel plant to meet the raw material requirements and working capital. The Telangana government is likely to participate in the bids, which will close on April 15.

Chairman of the Visakha Ukku Parirakshana Porata Committee D Adinarayana told TNIE that the initiative by Telangana government would give a much-needed fillip to their 780-day-old agitation. 
He said with  the support of Rs 800 crore raw material, they can achieve 100 per cent capacity production.

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