The Visakha Steel Plant which was achieved after many sacrifices are going to be privatized soon. The Central government is trying to show the losses as the reason for the privatization. Since the YCP government is pro-BJP, the Centre is thinking that this was the right time. It is learnt that the private companies are eyeing the 22 acres of prime land of the company. For instance, to kill a dog, it is being projected as it turned rabid. In a similar way the government is projecting that the company is in losses, as there are no iron ores and hence, they are trying to hand it over to private persons.
Visakha Steel plant was allotted to the state after the agitation of ‘Visakha Ukku – Andhrula Hakku’ and after 30 lives were sacrificed, the then Prime Minister Indira Gandhi gave her consent. The company started production in 1989 but was in losses after two years. There was a campaign that there was no other way than to close down the company. The economic reforms helped the Visakha steel. Since then, the company has been supplying steel to the country. The private persons are eyeing the company and the Centre is also trying to cash in and wants to bag Rs 60,000 crore in its treasury. The worker unions are alleging that the Centre was taking Rs 60,000 crore in lieu of the expenditure of Rs 20,000 crore in Polavaram project.
The Visakha steel plant is the only biggest company which provides employment to 17,000 employees directly and 15,000 indirectly and it is learnt that it was discussed in the cabinet to sell the stake. The governments have been trying to sell the company but there was resistance from the people and with the YSRCP which is not opening its mouth on several issues, the Centre is thinking that this would be the ideal time. The intellectuals are also stating that the government was trying to sell a company which annually produces 6.3 million tonnes of steel generating sales of Rs 20,000 crore.
The Centre states that there are no mines with Visakha but the responsibility of allocation of the mines lies with the Centre. While it is the failure of the Centre that mines aren’t being allocated. The regional parties in power in AP have pressurized the government but the Centre always postponed the issue.
The sales of the company increased now after a pause during the Corona time. During the December month, the sales were Rs 2,200 Crore and earned a profit of Rs 200 Crore. Presently, the steel prices are increasing internationally and for a ton of steel, the price is Rs 60,000. If the same trend continues, the company would earn a profit of Rs 4,000 Crore during the financial year 2021-22. The workers’ unions have alleged that the Centre wants to close down in the meantime and said they would stop the government.
TDP MP Rammohan Naidu has been raising his voice on the state issues and he has recently raised the Visakha plant issue also. He said that he was ready for any type of agitation to save the Visakha steel plant which was achieved with the sacrifice of 32 lives, which involved the displacement of people from 64 villages in order to acquire around 22,000 acres of land.