KT Rama Rao: Stop VSP privatization, give us Rs 5,000 crore in assistance

KT Rama Rao, who is the minister of industries for the state of Telangana and the working president of the BRS, said again on Sunday that the BRS would fight the central government's plan to privatise the Visakhapatnam Steel Plant (VSP) and asked for Rs 5,000 crore to help bring the steel plant back to life.

While instructing BRS Andhra Pradesh state president Thota Chandrashekar to show solidarity with the workers and labour unions, KTR said, VSP is the right of the Telugu people, and let’s save the plant.

KTR proposed ways to revive the 1.5 lakh crore plant and accused the Narendra Modi government of conspiring to privatize the PSU in a letter to the Centre.

He also said that the Centre's refusal to give VSP special iron ore mines has caused the company to spend up to 60% of its production costs on raw materials. This has put VSP in the red and given crony corporate companies a reason to take it over.

The EoI was issued to raise money for working capital and raw materials. He insisted that the Centre instantly rescind the plan because it was an attempt to transfer the PSU to private companies. According to KTR, the Steel Authority of India Limited can combine with the Vizag Steel Plant and undertake expansion plans worth 1 lakh crore.

He said that a steel factory in Bayyaram, Telangana, and a steel plant in Kadapa has been in high demand for some time, which will help SAIL achieve its growth objectives.

He asked for 5,000 crores in assistance, claiming that former Prime ministers P V Narasimha Rao and Atal Bihari Vajpayee had previously helped VSP out of a bind.

Loan monetization by VSP is restricted to a maximum of 25,000 rupees. The minister clarified that private businesses with comparable assets could raise loans of up to 70,000 crores.