CITU leader counters BJP claims on ‘saving’ Visakhapatnam Steel Plant from privatisation

Countering the claims of BJP State president PVN Madhav on the ‘privatisation of Visakhapatnam Steel Plant (VSP)’, Andhra Pradesh CITU general secretary Ch. Narasinga Rao challenged him for a public debate on the issue in presence of the media.

Speaking to media persons in Visakhapatnam on Sunday, Mr. Narasinga Rao alleged that the Modi government was keen on privatisation of VSP. He strongly condemned the statements of the BJP leaders that the ₹11,440 crore financial package and restarting operation of the third blast furnace in VSP were aimed at stopping the privitasation of the plant.

After the third blast furnace was revived this year (2025), the plant had suffered losses to the tune of ₹1,000 crore. He alleged that no attempts were being made to repair the damaged equipment in resulting in accidents at the plant.

He also alleged that the removal of 10,000 permanent and contract workers was a ploy to push the plant into losses. The financial package was given on the condition that the amount should be utilised only for clearing the loans taken by VSP. This was done to favour the private company, which came forward to acquire VSP.

The funds given under the special package were not used for purchase of raw material to run the plant, repair of equipment or for payment of salaries of employees. He alleged that the BJP was trying to mislead the public in the name of ‘financial package’ to VSP.

The failure of the Centre to provide captive mines to VSP was an impediment in the plant securing profits. Ironically, the Central and State governments were keen on provision of captive mines to the private sector Arcelor Mittal Steel Plant, which was yet to be set up. The CPI leader said that the statements of the BJP State president that VSP would be saved by the BJP were ‘far from the truth’ and were meant to deceive the public.

CITU district general secretary R.S.V. Kumar was present at the media conference.