VISAKHAPATNAM: The long-running debate over the future of Visakhapatnam Steel Plant (VSP) has taken a fresh turn with Rashtriya Ispat Nigam Limited (RINL), the corporate entity of VSP, inviting private participation in more than 30 key segments of the plant.
According to the latest notifications issued on August 16, RINL has sought Expressions of Interest (EOIs) from private players to operate 32 critical units of the steel plant.
The 32 segments for which RINL has invited Expressions of Interest include major power and steel-making units such as Captive Power Plants-1 and 2, Waste Heat Recovery Boilers, Turbo-generators, Coal Handling Plant of Thermal Power Plant, Continuous Casting Machines (CCM-1, 2, 3 and 4) of SMS-2, Secondary Metallurgy of SMS-1, and the BOF shops of SMS-1 and SMS-2 along with associated auxiliaries.
Other units notified are the finishing and shipping areas of the Medium Merchant and Structural Mill (MMSM), Structural Mill (STM), Special Bar Mill (SBM) and Wire Rod Mills (WRM-1, 2 and 6), roll shops and repair shops, central machine shop, iron and steel foundry, and energy and environment management department, including gas safety systems.
VSP being privatised in phases, alleges stir panel
The EOIs also cover blast furnaces-1, 2 and 3, including their furnace cooling, PCI and FE systems, as well as blasting operations at the Madharam Dolomite Mine, and its mine developer-cum-operator (MDO) model. The move has drawn severe criticism from trade unions, political parties and civil society groups.
The Visakha Ukku Parirakshana Porata Committee alleged that the plant was being privatised in phases despite assurances from the Centre and the State that a full strategic sale was not on the agenda. Committee leaders said recent steps indicate a gradual move towards privatisation, despite the announcement of `1,440 crore revival package.
They also objected to the removal of several hundred contract workers, calling it an attempt to cut the workforce.
Former IT Minister Gudivada Amarnath criticised the decision, recalling that 32 people had lost their lives during the movement for the steel plant’s establishment, and said it was ironic that “32 departments are now being handed over to private players.”
Former Union Secretary EAS Sarma, in a letter to Steel Minister HD Kumaraswamy, pointed to the refusal to allot captive iron ore mines to VSP, while granting mineral blocks to private companies, and delays in supplying coking coal as examples of discriminatory treatment.
Meanwhile, it has to be noted that Visakhapatnam MP M Sribharat, who met Kumaraswamy in New Delhi on August 4, urged the reinstatement of contract workers.
He also proposed transferring the Kendriya Vidyalaya on the plant premises to the Ministry of Education, implementing a Voluntary Retirement Scheme for Vimal Vidyalayam staff, and expediting full-time worker recruitment at the plant to strengthen production and promotions.
Kumaraswamy responded positively to the MP’s proposals, and assured that the ministry would certainly consider them.