Palla calls VSP privatisation charges by Opposition ‘false propaganda’

Dismissing the charges levelled by the Opposition that the Telugu Desam Party (TDP)-led NDA government is hand in glove with the Central government on the privatisation of Visakhapatnam Steel Plant (VSP) as ‘baseless’, TDP Andhra Pradesh unit president Palla Srinivasa Rao has called it a ‘false propaganda’ by the trade unions and the Opposition parties.

Addressing the media in Vijayawada on Tuesday, Mr. Srinivasa Rao reiterated that the NDA government in the State was committed to protecting the VSP and ensuring its continuation as a public sector unit (PSU).

“The YSRCP, Congress, Left parties and trade unions are spreading false propaganda that the VSP would be privatised. Some harsh decisions are inevitable for the continuation of the VSP as a PSU, and this includes the privatisation of some sections of the plant to improve productivity and reduce costs,” Mr. Srinivasa Rao said.

He said the bids called for Expression of Interest (EOI) recently was a “step in that direction”. “Some sections of the VSP would be given to good companies to improve efficiency. This has been happening for a long. There is nothing new in it,” the TDP leader said.

He recalled that then Chief Minister N. Chandrababu Naidu and MP Yerran Naidu convinced then Prime Minister Atal Bihari Vajpayee and prevented the VSP from going into the red by securing funds for it in 1998.

Visakhapatnam MP M. Sribharat and Union Civil Aviation Minister K. Rammohan Naidu had helped secure Central funds of ₹1,440 crore for the VSP this year to ensure steady supply of raw material. The third Blast Furnace was made operational after years and the VSP has achieved its highest production recently.

“The YSRCP, which had done nothing for the VSP during its tenure, is spreading false propaganda to mislead the plant workers and the people. Some trade union leaders had cheated the workers during the last five years and were responsible for the recruitment of a large number of ‘ghost workers’ on a contract basis by taking ₹3 lakh to ₹8 lakh from people. A probe will be ordered into the issue,” Mr. Srinivasa Rao said.

Pointing out that the monthly salary bill of the VSP employees and officers stands at ₹240 crore, he said, “If two Blast Furnaces operate to full capacity, the plant can just achieve a breakeven. The third Blast Furnace, which had not been working for the past several years, was made functional after the NDA government came to power in the State.”

“Our goal is the continuation of the VSP as the public sector unit. It should run to its full capacity and to do justice to the 8,000 displaced persons,” Mr. Srinivasa Rao added.