The Center is taking significant steps towards finding a lasting solution to the financial issues plaguing the Vizag Steel Plant. In a move to ensure the survival of the struggling plant, discussions are underway for its merger with the Steel Authority of India Limited (SAIL).
Recent meetings between key stakeholders, including the chairmen of SAIL and the National Mineral Development Corporation, along with Union Minister of State for Steel Bhupathi Raju Srinivas Verma, have shed light on the potential merger. Considerations have been made to sell the plant’s land to NMDC and explore bank loans to support the transition.
Additionally, talks have been held with the State Bank of India regarding the Vizag Steel Plant’s future. Plans are in place to sell a portion of the plant’s land for a pellet plant and provide financial support for capital investment. However, legal challenges have arisen, with the AP High Court restricting the sale of only a specific area of land.
The prospect of privatization has been a contentious issue, with trade unions expressing concerns over potential job losses. Despite initial plans for privatization, there is now a shift towards merging the plant with SAIL to address operational challenges and ensure the well-being of workers.
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