The BRS Working President and Telangana IT and MA&UD Minister, KT Rama Rao, has expressed his support for the employees of Vizag Steel Plant and has vowed to resist the Central government’s move to privatise the steel plant. In an open letter to the Central government, Rama Rao detailed the reasons behind the steel plant’s losses and suggested ways in which the plant could be revived. He accused the Modi government of having ‘evil plans’ to hand over the VSP to private players and claimed that the VSP would be pushed into losses as part of this conspiracy.
Rama Rao stated that the Centre did not allow special iron ore mines to the steel plant, forcing it to spend up to 60% of its production cost on raw materials. This was in contrast to private companies, whose production costs were less than 40% due to their access to iron ore, coal, and other mines. The VSP was facing challenges as it was competing with private corporate companies in the market in terms of production and was forced to sell at the same price as them, leading to losses.
The BRS leader also highlighted that the enterprise was in distress as coal had to be imported, and iron raw materials needed for steel production were being bought at market rate from NMDC. He questioned why PM Modi wrote off loans worth Rs 12.5 lakh crore for his corporate friends but was not showing the same generosity towards the Vizag steel plant.
Rama Rao suggested a detailed plan to revive the PSU, including merging it with Steel Authority of India Limited (SAIL), which has already announced its expansion plans with a cost of around Rs 1 lakh crore. This would contribute towards SAIL’s expansion goals and create an ecosystem to fulfill a long-standing demand for a steel factory in Bayyaram, Telangana, and a steel plant in Kadapa. If the Centre extends support, the enterprise can work at full capacity and generate profits.
In conclusion, Rama Rao demanded that the Modi government cancel the EoI notification and extend Rs 5,000 crore financial assistance to the steel plant. He also called on BRS AP unit President T Chandrashekar to extend solidarity to the workers of the steel plant, stating that Vizag steel is the right of Telugu people and the responsibility is on them to save the steel plant.
