Y.S. Jagan Mohan Reddy, the Chief Minister of Andhra Pradesh (A.P.,) finally took an official step towards the ongoing Visakhapatnam Steel Plant (VSP) issue.
On the 9th of March, Mr. Jagan Mohan Reddy wrote a letter to Prime Minister Narendra Modi regarding the VSP privatisation issue. In his letter Mr. Jagan Mohah Reddy appealed to PM Modi for an appointment to personally convey the opinion of all political parties and other stakeholders regarding the privatisation of the VSP under corporate entity and known as Rashtriya Ispat Nigam Limited (RINL.)
Briefing about the situation in Visakhapatnam regarding the steel plant, Mr. Jagan suggested various solutions to the issue. He requested to reconsider the decision of 100 % strategic disinvestment.
Mr. Jagan also said that he had also addressed the Union Minister for Steel, offering suggestions to revive RINL and make it financially strong.
Mr. Jagan also expressed concern over the recent announcement of Nirmala Sitharaman, the Finance Minister of India.
On the 8th of March, Ms. Sitharaman said the Central Government would go ahead with the plan of 100 % disinvestment of Government of India`s equity in RINL along with RINL`s stake in subsidiaries/joint ventures. It would be done through strategic disinvestment by way of privatisation. However, the people of Andhra Pradesh and Visakhapatnam, especially VSP employees expressed disappointment and are opposing the same.
The A.P., Chief Minister said, he would like to bring to the Prime Minister’s kind notice once again the importance of reviving RINL, its association with the A.P., people and various options available to revive the plant and its sustainability in future.
Mr. Jagan also showed confidence in the revival and growth of the VSP, without privatisation. He said the plant would again become a profitable venture given some support from the Government of India. He said instead of taking the disinvestment route like implementing some turnaround measures such as allotting captive iron ore mines to bring down the input costs, swapping high cost debt with low cost debt, converting debt into equity through equity conversion and monetisation of vacant land the GoI should support, making it a success.
The VSP privatisation is a major issue of concern for the people of Andhra Pradesh.
