YSR Congress Critiques Centre's Support for Vizag Steel Plant
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Synopsis
The YSR Congress Party has criticized the Central government's financial package for the Visakhapatnam Steel Plant, calling it inadequate to address the plant's ongoing financial struggles. The party emphasizes the need for sustainable solutions rather than privatization.
Key Takeaways
- YSR Congress disputes the adequacy of the Central financial package.
- Calls for sustainable solutions for the Visakhapatnam Steel Plant.
- Criticism of the government's approach to privatization.
- Concerns about employee layoffs and financial instability.
- Emphasis on the plant's historical significance and need for support.
Visakhapatnam, Jan 18 (NationPress) The YSR Congress Party criticized the financial support package unveiled by the Centre for the revitalization of the Visakhapatnam Steel Plant as inadequate.
YSRCP leader and former Andhra Pradesh minister Gudivada Amarnath emphasized that the steel plant, which is suffering from significant financial difficulties, needs long-term solutions. He asserted that the package from the central government does not sufficiently tackle its fundamental problems.
He condemned the Centre’s management of the Visakhapatnam Steel Plant (VSP) situation, pointing out that YSRCP has persistently opposed the plant’s privatization under the former Chief Minister Y.S. Jagan Mohan Reddy.
Amarnath noted that the YSRCP's consistent resistance led to the suspension of the privatization process, a fact recognized by Union Minister H. D. Kumaraswamy.
Furthermore, he stressed that the Andhra Pradesh Assembly had passed a resolution against privatization and forwarded it to the Central government, demonstrating the state's dedication to safeguarding the steel plant and its workforce.
Amarnath expressed disappointment over the financial package revealed by the central government, asserting that it fails to meet expectations and lacks clarity. He highlighted that from the announced Rs 11,400 crore, Rs 1,500 crore has already been deducted, leaving a mere Rs 9,800 crore, which is insufficient for the plant's revival.
He questioned the lack of a formal announcement of the package during the Prime Minister's recent address in Vizag, demanding transparency concerning the government’s plans.
Amarnath accused the Central government of not retracting its privatization decision, despite its claims of support for the plant, resulting in confusion among employees and the public.
The former minister expressed concern about the plant’s current condition, indicating that it is weighed down by unmanageable debts and a shrinking workforce.
Once staffed by 25,000 employees, the plant now has only 10,000, and the implementation of Voluntary Retirement Schemes (VRS) has further jeopardized its operations.
He raised the question of how the plant could sustain itself if more employees were let go.
Highlighting the steel plant's historical and emotional importance, Amarnath pointed out that over Rs 55,000 crore has already been remitted to the government in taxes, yet the plant is being driven towards privatization instead of receiving support.
He criticized previous mismanagement, including delays in salary payments, removal of allowances, and misuse of Provident Fund (PF) contributions. Amarnath urged the Central government to take decisive actions to ensure the steel plant’s survival and long-term sustainability.
He proposed a tax holiday for the plant, its consolidation with the Steel Authority of India Limited (SAIL), allocation of captive mines for self-sufficiency in raw materials, and the transfer of land currently under the President's name to the steel plant.
He accused the Central government of adopting a short-sighted approach and failing to deliver real solutions.
Furthermore, he questioned the celebrations by certain coalition leaders, labeling it inappropriate given the distressing state of the steel plant and the hardships faced by its employees.
The YSR Congress leader urged the Central government to abandon its privatization agenda and adopt a sustainable strategy to revive the steel plant, which is crucial for the region and a source of pride for its citizens.
