The Government is selling off 10 per cent stake in Rashtriya Ispat Nigam Ltd - Visakhapatnam Steel Plant grossly undervaluing its assets, according to Steel Workers’ Federation of India (SWFI) General Secretary P K Das.

The federation is affiliated to the CITU.

He said: “The Government equity to the extent of Rs 489 crore is being offloaded as part of the government’s disinvestment policy ignoring the larger interests of the nation in general and Andhra Pradesh in particular.”

Das, a senior leader of CITU who was here to campaign for recognised union elections for VSP, said the Government had sold five per cent shares of Steel Authority of India Ltd (SAIL) at Rs 2,520 crore to pave the way for its privatisation.

He said the government was selling coal blocks through auction to domestic and foreign private companies. Immediately after acquiring coal blocks, private houses shall increase the prices of coal to make windfall profits.

“This will increase cost of steel and power and make domestic steel most uncompetitive in global market, particularly from China and Korea. This will also push Indian steel plants into a very difficult position,” he said.

Steel Plant Employees’ Union honorary president Ch. Narsinga Rao and AITUC district president B.Ch. Masen were present.