Steel Authority of India Limited (SAIL) Independent Director and BJP North-Andhra Campaign Committee convener for the Union government’s achievements in the last nine years, Sagi Kasi Viswanatha Raju has said that he has submitted a proposal to the Centre, requesting the takeover of Visakhapatnam Steel Plant (VSP) by the SAIL which has already rolled out its expansion plans.
Speaking to The Hindu here on June 6 (Tuesday), he said that the SAIL had planned to increase its capacity from 20 metric tonnes per annum to 50 MTPA by 2023 with an investment of ₹1.8 lakh crore.
“All BJP leaders welcome the Union government’s disinvestment plan of VSP and Nagarnagar Steel Plant in Chhattisgarh. The Centre government has been urged to relax norms and allow the SAIL to take over those plants so that both of them remain as public sector units,” said Mr. Viswanatha Raju.
“It would be a win-win situation for the VSP and the SAIL. The Visakhapatnam Steel Plant has a debt of ₹22,000 crore and it pays up to 14% interest to the lenders. The debt burden will come down as SAIL can get the funding at an interest rate of 4%. Moreover, the SAIL has captive iron mines which can ensure supply of raw material at reasonable prices,” he added.
According to him, a BJP delegation will submit a report to Union Home Minister Amit Shah, who is scheduled to visit Visakhapatnam on June 11.
The BJP, which is facing criticism over the privatisation of VSP, will get a political upper hand if the steel plant is handed over to another public sector unit such as SAIL. The government has to relax the norms as one PSU is not allowed to take over another PSU, he said.
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