AP CM Mr Jagan Reddy Seeks Cancellation of RINL VSP Privatization
Andhra Pradesh Chief Minister Mr YS Jagan Mohan Reddy met with India’s Steel Minister Mr Dharmendra Pradhan on Friday in New Delhi and urged the central government not to privatise Visakhapatnam Steel Plant. In the meeting, the CM appealed to the Union government to stop privatisation of VSP and requested it to consider the alternatives suggested by the state in reviving the plant. He said “20,000 people are employed in VSP and thousands more are indirectly employed. The company performed well and generated profits between 2002 and 2015. The plant has gone through an expansion by taking loans, but due to the slump in the international market during 2014-15, the company fell into debts with increasing operational costs and lack of own mines.”
He said that allotting the captive mine in Odisha will help in reviving VSP. He also suggested other possibilities in restructuring the finances of VSP, where all short-term and long-term loans could be converted into equity easing the burden.