Karunanidhi slams disinvestment of Salem Steel Plant

July 29, 2016 12:00 am | Updated 05:40 am IST - CHENNAI:

DMK president M. Karunanidhi on Wednesday urged the Central government not to go ahead with the proposed disinvestment of the Salem Steel Plant.

In a statement, Mr. Karunanidhi said the plant was the result of a long-held demand that began in 1967. Its foundation stone had been laid by the then Prime Minister Indira Gandhi in 1970 when Mr. Karunanidhi was chief minister.

The DMK leader said that the plant is now of world-class standards and employs 2,500 people directly and over 5,000 indirectly. It produces 30,000 tonnes of steel products each year, mainly for the Integrated Coach Factory. He said the plant had turned out profits of Rs. 100 crore each year from 2003-2010 and had undergone a Rs. 2,000 crore equipment upgrade soon after.

Mr. Karunanidhi said that privatisation should not be an option; the Central government should consider appointing efficient officers to run the plant instead. He also said the SSP can produce electricity at Rs. 4 per unit if a power plant is set up. He added that the proposal for a 120 MW plant was put on hold.

He urged the AIADMK government not to support the privatisation only because the plant was started by a DMK government.

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