Visakhapatnam (Andhra Pradesh) [India]: Former Andhra Pradesh Minister of Industries and Commerce and YSRCP leader Gudivada Amarnath has criticized the central government for its handling of the Visakhapatnam Steel Plant (VSP) issue. He reaffirmed that the YSR Congress Party (YSRCP) under former Chief Minister Y.S. Jagan Mohan Reddy has consistently opposed the privatization of the steel plant.
Amarnath emphasized that the VSP, which is grappling with severe financial stress, requires sustainable solutions. He expressed dissatisfaction with the financial package announced by the central government, calling it insufficient to address the plant’s underlying challenges.
“It is because of YSRCP’s steadfast opposition that the privatization process was halted, as acknowledged by Union Minister HD Kumar Swamy,” Amarnath stated. He also mentioned that the Andhra Pradesh Assembly had passed a resolution opposing the privatization, further demonstrating the state’s commitment to safeguarding the plant and its workforce.
The former minister criticized the financial package, stating that out of the announced ₹11,400 crore, ₹1,500 crore has already been deducted, leaving only ₹9,800 crore. “This amount is inadequate for reviving the plant,” he said.
He also questioned why the package was not formally announced during the Prime Minister’s public address in Vizag last week, demanding transparency regarding the government’s intentions.
Highlighting the plant’s current challenges, Amarnath expressed concerns over its unmanageable debts and the sharp reduction in its workforce. “Once run with 25,000 employees, the plant now operates with just 10,000. The introduction of Voluntary Retirement Schemes (VRS) has further jeopardized its operations. How can the plant sustain itself if more employees are removed?” he asked.
Amarnath underscored the historical and emotional significance of the steel plant, pointing out that it has paid over ₹55,000 crore in taxes to the government. He criticized the central government for pushing the plant toward privatization instead of supporting it.
He also raised issues of past mismanagement, including delayed employee salaries, removal of allowances, and misuse of Provident Fund (PF) contributions.
The former minister proposed several measures to ensure the plant’s survival, including:
- Granting a tax holiday for the steel plant.
- Merging the plant with the Steel Authority of India Limited (SAIL).
- Allocating captive mines for raw material self-sufficiency.
- Transferring plant lands, currently under the President’s name, to the steel plant itself.
He accused the central government of adopting a shortsighted approach and criticized celebrations by some coalition leaders, calling it inappropriate given the plant’s dire condition.
Amarnath urged the government to abandon its privatization plans and adopt sustainable strategies to revive the steel plant, which he described as a lifeline for the region and a source of pride for the people of Andhra Pradesh.