Andhra Pradesh: YSR Congress Claims Centre’s Financial Package for Vizag Steel Plant is Insufficient
The YSR Congress Party (YSRCP) on Saturday criticized the financial package announced by the Centre for the revival of the Visakhapatnam Steel Plant, calling it insufficient to address the plant's core issues.
Visakhapatnam: The YSR Congress Party (YSRCP) on Saturday criticized the financial package announced by the Centre for the revival of the Visakhapatnam Steel Plant, calling it insufficient to address the plant’s core issues.
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YSRCP Leader Criticizes Centre’s Handling of VSP Issue
YSRCP leader and former Andhra Pradesh minister Gudivada Amarnath argued that the steel plant, which has been facing severe financial difficulties, requires long-term and sustainable solutions. He stated that the package announced by the Central government is inadequate to resolve the plant’s deep-rooted issues.
Amarnath also expressed discontent with the Centre’s handling of the issue, emphasizing that the YSRCP has consistently opposed the privatization of the steel plant under the leadership of Chief Minister Y.S. Jagan Mohan Reddy. He added that it was due to the party’s opposition that the privatization process was halted.
YSRCP’s Role in Halting Privatization
Amarnath pointed out that the Andhra Pradesh Assembly had passed a resolution opposing the privatization of the plant, which was subsequently sent to the Central government. He stressed that this move reflected the state’s unwavering commitment to protecting the steel plant and its workforce.
Concerns Over the Insufficient Financial Package
Amarnath raised concerns about the financial package announced by the Centre, stating that it falls short of expectations. He noted that of the Rs 11,400 crore announced, Rs 1,500 crore had already been deducted, leaving only Rs 9,800 crore. According to Amarnath, this amount is insufficient for reviving the plant.
He also questioned why there was no formal announcement of the package during Prime Minister Narendra Modi’s public address in Vizag last week, demanding greater transparency regarding the government’s intentions.
Accusations Against the Central Government
The former minister accused the Central government of failing to withdraw its privatization decision despite claiming support for the plant. He stated that this has left both employees and the public in confusion about the government’s true intentions.
Amarnath also expressed alarm over the plant’s current state, highlighting that it is burdened with unmanageable debts and a shrinking workforce. He pointed out that while the plant once employed 25,000 people, it now operates with just 10,000 employees, with the introduction of Voluntary Retirement Schemes (VRS) further jeopardizing its operations.
The Steel Plant’s Significance and Need for Support
Amarnath stressed the historical and emotional significance of the steel plant, noting that over Rs 55,000 crore has already been paid to the government in taxes. Despite this, the plant is being pushed toward privatization instead of receiving the necessary support.
He also criticized past mismanagement, including the failure to pay employee salaries on time, the removal of allowances, and the misuse of Provident Fund (PF) contributions.
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Calls for Sustainable Solutions
Amarnath demanded that the Central government take decisive steps to ensure the steel plant’s survival and long-term viability. He proposed several solutions, including a tax holiday for the plant, its merger with the Steel Authority of India Limited (SAIL), allocation of captive mines for raw material self-sufficiency, and the transfer of plant lands to the steel plant.
He accused the Central government of taking a shortsighted approach and failing to provide genuine solutions to the plant’s issues.
Criticism of Coalition Leaders’ Celebrations
Amarnath also criticized certain coalition leaders for celebrating the package, calling it inappropriate given the dire state of the steel plant and the hardships faced by its employees.
A Call for Abandoning Privatization Plans
The YSR Congress leader concluded by urging the Central government to abandon its privatization plans and adopt a sustainable strategy to revive the steel plant, which he described as a lifeline for the region and a symbol of pride for the people.
