The Telangana government has announced its intention to submit an expression of interest (EoI) for the acquisition of Rashtriya Ispat Nigam, commonly referred to as Visakhapatnam Steel Plant (VSP), located in Andhra Pradesh. The deadline for submission of the EoI is April 15 at 3 pm.
Sources said the State government has decided in principle to proceed with the submission of the EoI.
The ruling Bharat Rashtra Samithi (BRS) has been vocal in its opposition to the privatisation of Public Sector Undertakings (PSUs) by the Prime Minister Narendra Modi-led government, particularly the proposed privatisation of VSP in the neighbouring State of Andhra Pradesh.
The total assets of VSP were valued at nearly Rs 3 lakh crore but the Centre was valuing it at only Rs 35,000 crore. The Centre’s contribution to the plant was Rs 5,000 crore but in return the VSP, through dividends, taxes and other means, had paid Rs 50,000 crore to the Centre.
However, the Centre under its disinvestment and privatization plans, was planning to hand over the VSP to private players. Despite this, why was the ruling YSRCP with a strength of 31 MPs not raising its voice, he asked, pointing out that the Centre had already issued an Expression of Interest on March 27 and invited working capital. The deadline was set as April 15.
If the YSRCP government was committed to protecting the VSP, it should allot Rs.5000 crore as loan or investment and recover the same from VSP.
