Palla hails decision to convert power dues of VSP into shares

Telugu Desam State president Palla Srinivasa Rao has hailed the government decision to convert the electricity dues amounting Rs. 2,400 crore of the Visakhapatnam Steel Plant into equity shares.

In a statement on 16 October, Srinivasa Rao, who also represents the Gajuwaka Assembly constituency, said: “It shows the foresight of Chief Minister N Chandrababu Naidu and reflects the coalition government’s commitment to industrial rejuvenation. The initiative not only provides financial stability to the plant but also marks a decisive step in the resurgence of Andhra Pradesh’s steel industry.”

Observing that the Centre had earlier announced a revival package of Rs. 11,500 crore, the TDP State president said Rs. 9,500 crore was already released and the conversion of dues into share capital further consolidates the plant’s financial position.

Taking exception to what he termed ‘a deliberate campaign of misinformation’ by certain unions, particularly the CITU and those linked to Y S Jagan Mohan Reddy’s camp, Srinivasa Rao denied the claim that the plant could not operate without captive mines.

“Mines with iron content below 40 per cent are commercially unviable. For the plant to reach breakeven, production must touch 60 per cent of capacity—about 15,000 metric tonnes per day. With the third blast furnace now operational, production levels are steadily improving,” he explained.

“By 2047, Andhra Pradesh will emerge as Swarna Andhra—a model State in logistics, a hub of industrial investment, and a land of opportunity for the young,” he asserted.

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This article is written by Senior Journalist Lakkoju Nagesh Babu