Union Minister for Heavy Industries and Steel H D Kumaraswamy on Thursday ruled out privatisation of Rashtriya Ispat Nigam Limited (RINL) or the Vizag Steel Plant and stated that his ministry was working out a revival plan for the plant and convinced the Prime Minister on the issue.
The minister arrived in Vizag yesterday and met the management of the VSP whose corporate entity is RINL. Today, he held a review meeting at the steel plant for over three hours and even spoke to the workers.
Advertisement
“There is no question of privatisation. Before I announce, the prime minister’s permission is required. I have to convince him. What are all the issues pertaining to RINL that we had a discussion about? I am preparing a note. I have to gain the confidence of the PM and how to revive the RINL. For that we are working out,” said Kumaraswamy, who was accompanied by his minister of state Bhupathiraju Srinivasa Varma and TDP MP M Bharat along with other senior BJP leaders from AP.
Atul Bhat, the CMD of RINL was also present on the occasion along with joint secretary of the ministry Sanjay Roy as the Union minister reviewed the plant’s performance.
Later, Kumaraswamy wrote in the visitor’s book that their responsibility was to save the plant. He reassured the employees asking them not to worry about closure. With the prime minister’s blessings and support the plant will continue to operate at 100% production capacity and all necessary resources will be mobilized, he stated. Following the meeting, BJP leaders said the Union minister has sought two months to resolve the uncertainty over RINL’s future.
Leaders of the workers union, who have been protesting against the Centre’s decision to disinvest RINL for almost 1000 days, are seeking the merger of the plant with SAIL to save it. Otherwise, the steel plant will require huge capital investment which the NDA government is unlikely to sanction.
State AP BJP president Daggubati Purandeswari also wrote to Kumaraswamy proposing the merger with SAIL. “ I am herewith enclosing a strategic proposal for the takeover of Visakhapatnam steel plant (RINL Vizag) and Nagarnar Steel Plant, Chhattisgarh by the Steel Authority of India Ltd.(SAIL) aiming to create a new powerhouse in the Indian Steel industry, positioning it as a “jewel of India… Additionally, the merger will yield considerable cost savings in interest rates and raw materials, contributing to the faster profitability of the RINL Vizag plant,” she wrote.
Yesterday, an adverse report in an English daily that the NDA Government has taken a U-turn in its plan for RINL prompted vandalism by TDP workers at the office of the newspaper. YSRCP claimed it had stopped RINL’s disinvestment while lashing out at Chief Minister N Chandrababu Naidu over the news report.
