Palla Denies Opposition’s Claims on VSP Privatisation as ‘False Propaganda

Quick Summary:

• TDP Andhra Pradesh unit president Palla Srinivasa Rao dismissed allegations by the Opposition and trade unions claiming privatisation of Visakhapatnam Steel Plant (VSP), terming them “false propaganda.”
• Rao reiterated the NDA governmentS commitment to keeping VSP as a public sector unit (PSU), though he acknowledged that some sections might be privatized to improve productivity and reduce costs.
• Expression of Interest (EOI) bids have been called to bring in efficient companies for select sections of the plant, which is part of efforts to sustain it as a PSU.
• He highlighted past interventions by N. Chandrababu Naidu during Atal Bihari Vajpayee’s tenure that prevented financial distress at VSP in 1998, citing ongoing similar measures under current leadership.
• Central funds worth ₹1,440 crore were secured this year to ensure steady raw material supplies, alongside operationalizing a third Blast Furnace for improved steel production performance.
• Rao criticized YSRCP and certain trade union leaders for misleading workers with alleged unethical practices like recruitment of “ghost workers” on contracts involving bribes ranging from ₹3 lakh to ₹8 lakh; an inquiry into these claims has been promised.
• Monthly salary costs at VSP stand at ₹240 crore, with efforts underway toward achieving breakeven production by fully utilizing its three Blast Furnaces.

Indian Opinion Analysis:
The implications surrounding Visakhapatnam Steel Plant remain critical due to its past and economic significance for Andhra Pradesh and India’s PSU framework overall. While TDP’s assurances about retaining the plant as a public sector entity are reassuring for stakeholders, plans involving partial privatisation may introduce complexities around worker satisfaction or operational transparency if not managed properly. Securing funding from both state and central levels demonstrates an active approach toward sustaining production capabilities; however, accusations against previous administrations’ handling require robust investigations before drawing conclusions.

Balancing cost-reduction goals while safeguarding employment amid political crossfire highlights broader challenges faced by PSUs across India today-particularly within industries demanding high capital input but constrained by inefficiency concerns.

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