MP rules out privatisation of VSP

Visakhapatnam MP Mathukumilli Sri Bharat has ruled out the privatisation of Vizag Steel Plant. Speaking to the media at his residence on 26 August, the MP said: “The steel plant is a matter of pride for Vizag. Our goal is to make it earn profits. Privatisation has never been on the agenda. Certain groups are deliberately spreading false propaganda.”

“All three blast furnaces are running at full capacity,” he said, adding that the plant land would not be sold under any circumstances. “Only on a lease basis, some allotment was made to NMDC.

Stating that he has already requested the Union Government to provide strong and effective leadership to the Visakhapatnam Steel Plant so that it can be brought back to profitability, he exuded confidence that in the coming days, a solution would be found to most of the issues confronting the plant.

State TDP president and Gajuwaka MLA Palla Srinivasa Rao, who was also present, said that the plant’s losses were wrongly attributed to high raw material costs.

“Now, with three blast furnaces being operational, the plant is on the right track,” he maintained.

“At present, the management’s entire focus is on how to reduce costs to bring the plant back into profits,” he added. Vishakha North MLA Vishnu Kumar Raju clarified that the Centre had no intention of privatising the plant.

“Some contracts were given only for operational convenience. That does not mean privatisation of the Steel Plant,” he observed.

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This article is written by Senior Journalist Lakkoju Nagesh Babu