At a press meet in Visakhapatnam, leaders of the Visakha Ukku Pariksharan Porata Committee urged Prime Minister Narendra Modi to stop the privatization of the Visakhapatnam Steel Plant. , Photo Credit: V. Raju
TeaChief Minister of Telangana K. Chandrasekhar Rao is known to be a shrewd politician. His latest move to bid for the Expression of Interest (EoI) floated by Rashtriya Ispat Nigam Limited (RINL), the corporate arm of the Visakhapatnam Steel Plant (VSP), has surprised not only the ruling YSR Congress party in Andhra Pradesh. , But also the opposition. Mr Rao, who is facing a tough challenge from the Bharatiya Janata Party (BJP) in Telangana, seized the opportunity to take on other parties, including the Telugu Desam Party (TDP) and the Jana Sena Party (JSP), along with the BJP. . Neighboring Andhra Pradesh
For Mr. Rao, who has been harboring national ambitions for some time now, this was the perfect opportunity to enter Andhra Pradesh politics. He is now the talk of the town: plant workers, union leaders cutting across party lines and people emotionally attached to the steel plant are all praising him. A section of the media has also projected him as the savior of the steel plant, which is fighting against the central government’s privatization move. Mr. Rao also has an opportunity to appeal to the voters of Seemandhra.
The people of the area are emotionally attached to the steel plant. This is because the journey to the plant is one of struggles and sacrifices. The plant came into existence after a decade-long statewide agitation under the banner of ‘Visakha Ukku, Andhraula Hakku’ (Visakha Steel, Right of Andhra). Around 32 people were killed during the agitation in November 1966. Ever since the foundation stone was laid by the then Prime Minister Indira Gandhi on January 20, 1971, and the first phase of production began in October 1991, the plant has seen many ups and downs. For example, in 2000, it was referred to the Board for Industrial and Financial Reconstruction, but after much pressure, it was given a restructuring package.
Knowing the value of the plant to the people, Mr. Rao has played his cards well. Their agenda looks simple – to prove that the BJP is against the development of Telangana and Andhra, and has failed to fulfill the promises made in the Andhra Pradesh Reorganization Act of 2014. All other parties are on the backfoot.
Andhra Pradesh IT and Industries Minister Gudivada Amarnath has said that the government has no interest in participating in any takeover bid for EOI, but added that the state government is against privatization bids. This does not seem to have gone down well with VSP employees, who said they expected the state government to be more aggressive in pursuing their demand. Leaders and members of Vishakha Ukku Pariksaran Porata Committee (VUPPC), an umbrella body of all unions fighting against the decision of 100% strategic sale announced by the Union Finance Minister, said, “Despite having around 22 MPs in Parliament, they failed.” In 2021. Other parties have also not been vocal on the issue of privatisation, he said. Resentment towards the BJP can be seen in the defeat of BJP MLC candidate PVN Madhav in the recent graduate constituency MLC election in Uttarakhand (North). The employees feel that only Mr. Rao has given a befitting reply to the privatization move. But it is also believed that this is his political move.
In 2014, a proposed disinvestment of 10% stake in the plant was strongly opposed by unions and the public, and the government had to backtrack. The 100% strategic sale has once again enthralled the employees and people of the state, and VUPPC has so far been able to consolidate its hold.
The Telangana government had earlier stalled the privatization of Singareni Collieries Company Limited (SCCL). This time, Mr. Rao sent the bidding proposal through SCCL. He sent leaders of BRS and directors of SCCL along with directors of VSP, employees and members of VUPPC for consultations on the modalities.
One of the main issues plaguing VSP since its inception is the approval of captive iron ore and coal mines. Mr Rao has promised to address both these issues.
Now the BJP-led central government can have an opinion in this matter. How much Mr Rao’s “master stroke” will benefit him in both the states remains to be seen. It also depends on how he organizes his army in the states.