Centre’S Package For Vizag Steel Plant Insufficient, Claims YSR Congress

(MENAFN- IANS) Visakhapatnam, Jan 18 (IANS) The YSR congress Party on Saturday termed as insufficient the financial package announced by the Centre for the revival of the Visakhapatnam Steel Plant.

YSRCP leader and former Andhra Pradesh Minister Gudivada Amarnath asserted that the steel plant, which has been operating under severe financial stress, requires sustainable solutions, and the package announced by the Central government is insufficient to address its core issues.

He criticised the Centre's handling of the Visakhapatnam Steel plant (VSP) issue, emphasising that YSRCP has consistently opposed its privatization under the leadership of former Chief Minister Y.S. Jagan Mohan Reddy.

Amarnath stated that it was due to YSRCP's steadfast opposition that the privatisation process was halted, a fact acknowledged by Union Minister H. D. Kumaraswamy.

He also highlighted that the Andhra Pradesh Assembly had passed a resolution opposing privatisation and sent it to the Central government, showcasing the state's unwavering commitment to protecting the steel plant and its workforce.

Amarnath raised concerns over the financial package announced by the central government, stating that it falls short of expectations and clarity. He pointed out that from the announced Rs 11,400 crore, Rs 1,500 crore has already been deducted, leaving only Rs. 9,800 crore, which is inadequate for reviving the plant.

Questioning the absence of a formal announcement of the package during the Prime Minister's public address in Vizag last week, he demanded transparency regarding the government's intentions.

He accused the Central government of failing to withdraw its privatisation decision despite claiming to support the plant, leaving the employees and the public in confusion.

The former minister expressed alarm over the plant's current state, stating that it is burdened by unmanageable debts and a dwindling workforce.

Once run with 25,000 employees, the plant now operates with just 10,000, and the introduction of Voluntary Retirement Schemes (VRS) has further jeopardised its operations.

He questioned how the plant would sustain itself if more employees were removed.

Stressing the steel plant's historical and emotional significance, Amarnath noted that over Rs 55,000 crore has already been paid to the government in taxes, yet the plant is being pushed toward privatisation instead of being supported.

He also criticised past mismanagement, including the failure to pay employee salaries on time, the removal of allowances, and the misuse of Provident Fund (PF) contributions. Amarnath demanded that the Central government take decisive steps to ensure the steel plant's survival and long-term viability.

He called for a tax holiday for the plant, its merger with the Steel Authority of India Limited (SAIL), allocation of captive mines for raw material self-sufficiency, and the transfer of plant lands, currently under the President's name, to the steel plant.

He accused the Central government of taking a shortsighted approach and failing to provide genuine solutions.

He also questioned the celebrations by certain coalition leaders, calling it inappropriate given the dire state of the steel plant and the plight of its employees.

The YSR Congress leader urged the Central government to abandon its privatisation plans and adopt a sustainable strategy to revive the steel plant, which is a lifeline for the region and a symbol of pride for the people.

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