APCC Chief Accuses Governments of Favoring Private Steel Giant Over Public Sector Vizag Plant
In a strongly worded press conference held in Vijayawada on Tuesday, Andhra Pradesh Congress Committee (APCC) President YS Sharmila launched a blistering critique against both the Central and State governments. She alleged what she termed 'stepmotherly treatment' towards the long-standing Visakhapatnam Steel Plant (Vizag Steel), contrasting it with what she described as 'motherly support' being extended to the proposed ArcelMittal Steel plant.
Massive Incentives for Mittal Project Raise Eyebrows
While welcoming industrial investments in principle, Sharmila expressed grave concerns over the scale of incentives reportedly being offered to the Mittal Steel project. She questioned the economic rationale behind a concessions package valued at an astonishing Rs 25,000 crore. This comprehensive package is said to include:
- A 15-year exemption from Goods and Services Tax (GST)
- Subsidized electricity at a rate of just Rs 1 per unit
- Allocation of a dedicated captive port facility
- Assured water supply for the plant's operations
"Governments are going out of their way to support a private steel plant, but are systematically neglecting a public sector unit like Vizag Steel," Sharmila stated emphatically. "This plant was built on the ultimate sacrifices of 32 people and sustains the livelihoods of thousands of families. This disparity in treatment is not just unfair; it is a betrayal of public trust."
Alleged 'Silent Killing' of Vizag Steel Amid Financial Distress
The APCC president went further, accusing authorities of orchestrating a 'silent killing' of the Vizag Steel Plant. She highlighted the unit's severe financial woes, with debts reportedly exceeding Rs 20,000 crore. Despite this critical situation, Sharmila pointed out that the plant's long-pending demands for survival and revival continue to be ignored.
These unmet demands include the crucial allocation of captive iron ore mines, which would provide a stable raw material supply, a much-needed tax holiday to ease its financial burden, and dedicated modernization funds to upgrade its aging infrastructure. Sharmila also raised a red flag over the potential diversion of iron ore from the Bailadila mines to the new Mittal project, warning that such a move could critically weaken Vizag Steel's operational capacity and push it further towards collapse.
Privatization Fears and Demands for Equal Treatment
A core part of Sharmila's criticism focused on the lingering threat of privatization. She noted the lack of a clear, written assurance from the Central government against the disinvestment of Vizag Steel. The decision taken in 2021 to privatize the plant, she reminded, has never been formally withdrawn.
"Verbal statements claiming there will be no privatization are mere words without any binding, written guarantee," she asserted, expressing deep skepticism over the government's intentions.
To safeguard the future of the plant and its workforce, Sharmila put forth a clear set of demands:
- The immediate merger of Visakhapatnam Steel Plant with the Steel Authority of India Limited (SAIL) to ensure its stability under a larger public sector umbrella.
- Extension of the same lucrative incentives and concessions being offered to the ArcelMittal project to Vizag Steel, ensuring a level playing field.
- The reinstatement of approximately 17,000 workers who were allegedly removed from their positions, restoring jobs and livelihoods.
Sharmila's sharp attack underscores the growing political and public concern over the fate of a key public sector asset in Andhra Pradesh, juxtaposed against the arrival of a major private investment, setting the stage for a significant policy and political debate.
