Oneindia News reported that the Andhra Pradesh High Court has advised the central government to reconsider its decision to privatize the Visakhapatnam Steel Plant. The court also sought to know why the plant was being privatized if it was making profit. The petitions were filed by former IPS officer VV Laxminarayan and one Suvarna Raju challenging the Centre’s move to privatize VSPs. Hearing the petitions, a division bench of Chief Justice Prashant Kumar Mishra and Justice DVSS Somayazulu sought to know whether the plant was running in loss and the damage it suffered in the last five years.Petitioners’ counsel B Adinarayana Rao informed the court that the steel plant was suffering due to lack of captive mines. Stating that the Center has not explained its reasons for privatization of VSPs, Rao said, “Centre is of the opinion that some capitalists may run the plant.” On the other hand, Advocate General S Sriram informed the court that the VSP was currently running on huge profits and Chief Minister YS Jagan Mohan Reddy had also written a letter to the Center suggesting alternative measures without privatizing the plant. Assistant Solicitor General N Harinath informed the court that the Center has decided to privatize the plant as it continues to suffer losses.The bench said that though various sectors have been affected due to the COVID-19 pandemic, the steel plants did not bear the brunt. The unfavorable conditions for importing steel from China were also one of the reasons for the sector to flourish during the pandemic, the bench said and added that it would be unfair to say that the VSP will now make profits, if it cannot during the pandemic. The court posted the matter for further hearing on November 14.Meanwhile, the court also issued notice to the Center to respond to petitions filed recently, seeking a direction to implement the assurance made earlier to provide employment to ration card holders in steel plants. Further hearing on November 14 The Assistant Solicitor General informed the court that the Center has decided to privatize the plant as it is continuously causing losses.
Oneindia News reported that the Andhra Pradesh High Court has advised the central government to reconsider its decision to privatize the Visakhapatnam Steel Plant. The court also sought to know why the plant was being privatized if it was making profit. The petitions were filed by former IPS officer VV Laxminarayan and one Suvarna Raju challenging the Centre’s move to privatize VSPs. Hearing the petitions, a division bench of Chief Justice Prashant Kumar Mishra and Justice DVSS Somayazulu sought to know whether the plant was running in loss and the damage it suffered in the last five years.Petitioners’ counsel B Adinarayana Rao informed the court that the steel plant was suffering due to lack of captive mines. Stating that the Center has not explained its reasons for privatization of VSPs, Rao said, “Centre is of the opinion that some capitalists may run the plant.” On the other hand, Advocate General S Sriram informed the court that the VSP was currently running on huge profits and Chief Minister YS Jagan Mohan Reddy had also written a letter to the Center suggesting alternative measures without privatizing the plant. Assistant Solicitor General N Harinath informed the court that the Center has decided to privatize the plant as it continues to suffer losses.The bench said that though various sectors have been affected due to the COVID-19 pandemic, the steel plants did not bear the brunt. The unfavorable conditions for importing steel from China were also one of the reasons for the sector to flourish during the pandemic, the bench said and added that it would be unfair to say that the VSP will now make profits, if it cannot during the pandemic. The court posted the matter for further hearing on November 14.Meanwhile, the court also issued notice to the Center to respond to petitions filed recently, seeking a direction to implement the assurance made earlier to provide employment to ration card holders in steel plants. Further hearing on November 14 The Assistant Solicitor General informed the court that the Center has decided to privatize the plant as it is continuously causing losses.
