The Hindu Business Line : TDP opposes equity dilution in Vizag Steel

Visakhapatnam, Dec. 22 Telugu Desam Party is opposed to the decision taken by the board recently to dilute the equity of the Rashtriya Ispat Nigam Ltd (RINL) here to the extent of 25 per cent. The party will also oppose any move to merge RINL with SAIL, said Mr N. Chandrababu Naidu, President of the party.

At a press meet here on Friday, Mr Naidu said the Visakhapatnam steel plant had been set up as a result of the agitation of the Telugu people, with the slogan “Visakha Ukku – Andhrula Hakku”, and therefore “any move to weaken the plant is to be deplored. Equity dilution, I suspect, is a prelude to merger with the SAIL, which is not acceptable to us.”

He said his party had opposed the move to privatise the steel plant, when it was in losses in the late nineties, and taken steps to get it revived and to wipe out the losses. “Now, it has turned around and is earning profits. Therefore, there is no justification for equity dilution or merger with SAIL,” he said.

Captive ore mines

He also found fault with the State Government for allotting Obulapuram iron ore mines to the newly-floated Brahmani Steels in Kadapa district, ignoring the claims of the Visakhapatnam steel plant.

“Lack of captive mines is a serious handicap suffered by the plant and the State Government has chosen to ignore this plant and grant ore mines worth Rs 50,000 crore to a new company. The Chief Minister, Dr Y.S Rajasekhara Reddy, is behind the decision, as he has a covert stake in the company. It is a benami transaction,” he alleged.

Mr Naidu was equally critical of the Union Government’s for its alleged change in the stand on merging the Bharat Heavy Plate and Vessels here with BHEL.

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TDP opposes equity dilution in Vizag Steel

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