VIJAYAWADA : The Andhra Pradesh High Court on Wednesday directed the Central government to submit details on what action it has taken on the letter submitted by Chief Minister YS Jagan Mohan Reddy seeking alternative arrangements for continuing the Visakha Steel Plant in the public sector instead of privatising it.
Hearing a batch of petitions, including the PILs filed by retired IPS officer JD Lakshminarayana and Praja Shanti Party founder KA Paul, a division bench of Justice A Venkata Seshasai and Justice N Vijay observed that lack of any response to the letter from the Chief Minister is not proper and said it is responsibility of the Central government to give a reply to the CM’s letter. “You can not sit on it. You have to respect the CM’s letter,” the court stressed.
Further, it pointed out that in the counter filed by the Central government, there has been no mention of the Chief Minister’s letter and the action taken in response.
The Central government was directed to file an affidavit with all the details about the sale of the lands given for the steel plant. It questioned, “Under which Act the steel plant was privatised?
Was there any legislation permitting to privatise a public sector undertaking? Were the consent of the employees of the steel plant, the State government, and other stakeholders taken for the privatisation of the steel plant? What is the attitude of the central government?”
The court also asked the Centre whether it had taken any action on the proposal of KA Paul to bring needed funds from foreign countries and the government’s permission for opening an account under the Foreign Contribution Regulation Act. During the case argument, KA Paul said that for 45 years, Visakha Steel Plant has paid Rs 54,000 crore in the form of taxes to the Centre. Counsel for another petitioner said the State government has filed the counter in the case and on being asked if it has suggested any alternatives, the court was informed about the CM’s letter to the Centre and lack of response.
When the court asked the RINL counsel about the sale of lands given for the steel plant, he said only the 25 acres purchased by the RINL with its funds were being sold. As regards privatisation, disinvestment from the PSU is at the discretion of the Centre. Further hearing in the case was adjourned to April 24.