VISAKHAPATNAM: The Andhra Pradesh government has clarified that it will not proceed with the privatization of the Visakhapatnam Steel Plant (VSP), which has been a point of contention for a long time. Reports suggesting that the privatization process had been halted were dismissed by officials. The government reiterated its intention to focus on the revival and improvement of the Rashtriya Ispat Nigam Limited (RINL), which operates the steel plant.
RINL, a significant public sector undertaking located in Visakhapatnam, had been struggling financially, facing severe losses in recent years. However, the central government has allocated significant funds, including Rs. 1,650 crore in recent months, to revitalize its operations and improve its financial standing. Additionally, worker unions have been vocal in their opposition to privatization, especially given the plant’s strategic importance and its role in providing employment to many in the region.
Despite previous announcements about privatization, the central government is now focusing on restructuring RINL rather than its sale. This change in approach comes amid growing protests from labor unions and local politicians, who have pushed for the plant’s preservation as a public sector entity.
