Says CM Naidu fully committed to reviving VSP

Making a bold and assertive statement amid persistent rumours of privatisation of Visakhapatnam steel plant, TDP’s state president and MLA from Gajuwaka Mr Palla Srinivasa Rao has come out strongly condemning baseless rumours of its privatisation.

Rubbishing these rumours Mr Palla Srinivasa Rao announced that the Visakhapatnam Steel Plant (VSP) would remain firmly in the public sector and “will never be privatised under any circumstances.

Speaking to reporters at the TDP’s central office in Mangalagiri, Mr. Srinivasa Rao dismissed what he termed “deliberate disinformation campaigns” being propagated by leaders and trade union representatives allegedly aligned with the YSR Congress Party (YSRCP).

A symbol of Andhra’s aspirations

“Visakha Ukku – Andhrula Hakku was not just a slogan; it was a people’s movement that united Andhra Pradesh. Generations of families have struggled and sacrificed for this plant. To say it will be privatised is both baseless and reckless. There is no such proposal, and there never will be,” said the TDP state president speaking with emotional fervour.

The TDP leader underscored the role played by Chief Minister Mr N. Chandrababu Naidu in protecting the plant at a time when it was battling severe financial stress.

“It is due to his leadership that a revival package of over Rs 14,000 crore — Rs 11,440 crore from the Union government and Rs 2,600 crore from the State — had been mobilised to stabilise operations.

These funds have ensured steady supply of raw materials, power, and water, breathing life into the plant’s operations,” he said, adding that this intervention had decisively altered the trajectory of the enterprise.

Echoes of history

Drawing a parallel with past crises, Mr. Srinivasa Rao recalled how the Vajpayee government in 1998 had stepped in with Rs 1,350 crore to save the plant. “History has repeated itself. Once again, timely intervention — this time by Chief Minister Naidu, Union Minister Rammohan Naidu, and MP Bharat, with the support of Prime Minister Narendra Modi’s government — has steered the steel plant away from collapse and towards profitability,” he observed.

Outsourcing vs. privatisation

Responding to apprehensions raised by workers’ unions, Mr. Srinivasa Rao clarified that the outsourcing of certain auxiliary works to private firms should not be mistaken for privatisation.

“Such arrangements are not new. They have existed for decades. Today, more than 15,000 contract workers are employed in the plant, and their contribution is vital to production,” he said.

Explaining the economics of scale, he noted that the plant has three blast furnaces, of which at least two must operate at full capacity to achieve break-even.

“Now, with two furnaces running optimally, the plant has entered profit. Despite a monthly wage bill of Rs 240 crore, the plant is generating surpluses of Rs 100–200 crore,” he added.

Contrasts with YSRCP era

Mr. Srinivasa Rao contrasted the present revival with the “stagnation and mismanagement” of the past five years. “Between 2020 and 2025, under YSRCP rule, the plant ran at only 20–30 per cent capacity, with just one furnace functional. Losses mounted, and the plant was pushed to the brink,” he said.

He went on to allege large-scale irregularities during that period, including the sale of contract jobs for sums ranging from Rs 3 to Rs 8 lakh and the creation of “ghost workers” who drew salaries without ever working in the plant. “These malpractices will not go unexamined. A thorough probe is unavoidable,” he asserted.

Justice for displaced families

Mr. Srinivasa Rao reaffirmed the government’s commitment to ensuring justice for families displaced by the plant’s establishment. He said sustained efforts had already secured relief for 8,000 displaced persons and further measures were in progress.

“The coalition government is committed to safeguarding the interests of workers, strengthening the public sector, and delivering justice to displaced families. These are not mere assurances — they are priorities under the leadership of Chief Minister Chandrababu Naidu and Minister Nara Lokesh,” he stressed.

Warns against disinformation

Taking a sharp dig at the Opposition, Mr. Srinivasa Rao alleged that the YSRCP and its affiliates were orchestrating falsehoods — not only about the steel plant but also on issues such as the Amaravati floods. “But people are no longer gullible. They will not fall prey to such propaganda,” he said.

He cautioned that misinformation on social media posed a grave risk to public trust. “False knowledge is more dangerous than ignorance. I appeal to everyone: verify facts before forwarding messages. The steel plant is safe, and its future secure in the public sector,” he concluded.