The Hindu Business Line : CITU opposes private investment in VSP

THE Centre of Indian Trade Unions (CITU) is critical of the proposal of the Visakhapatnam Steel Plant (VSP) to invite private investment to the extent of Rs 1,000 crore for setting up additional power plant and air separation plant as part of expansion. It has threatened to launch an agitation against it.At a press conference here on Thursday, the district general secretary of CITU, Mr A. Ajay Sarma, said after the Cabinet approved the expansion plan (from 3 million tonnes to 6.3 MT at a cost of Rs 8,692 crore) after much delay, the VSP management was inviting private investment in the additional power plant and air separation plant. "We successfully warded off private investment in VSP in early 2000 through agitation. Now the Government seems to be determined to introduce privatisation in some form or the other. But we will not allow it," he said.

Expressing the view that VSP, which had a surplus of Rs 5,000 crore could easily meet the additional requirement of funds within the next three years, he said during the past three years the plant had earned profits of Rs 500 crore, Rs 1,500 crore and Rs 2,000 crore.

Mr Sarma also demanded captive mines for VSP as it was the only public sector plant without its own mines. "POSCO in Orissa is sanctioned iron ore mines even before the plant is started. The joint-venture company with South Korea is now exporting iron ore directly against the nation's interests," he said. The general secretary of the Steel Plant Employees' Union (SPEU), affiliated to the CITU, Mr N. Rama Rao, alleged that by privatising the additional thermal power plant and the air separation plant, the Government wanted to sell power as well as oxygen and acetylene for ready money. Noting that the external requirement of raw material in VSP was as high as 37 per cent compared to Tisco's 9 per cent and the Steel Authority of India Ltd (SAIL)'s 14 per cent, he said VSP profits could have been much higher had it possessed captive mines.

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