CPI(M) Anakapalli district committee secretary K. Lokanadham has alleged that the Central and State governments are trying to kill Visakhapatnam Steel Plant (VSP).
In a statement issued here on Thursday, Mr. Lokanadham said that the Centre had not allotted captive mines, did not give ₹5,000 crore working capital and was not filling up the vacant posts in the plant.
He said that at the time of the establishment of VSP, a 550 MW power plant was set up. While 250 MW of power produced at this plant was supplied to VSP, the remaining 300 MW used to be given to the State government. An agreement was made with Coal India in Odisha for the supply of thermal coal required for the operation of the power plant. VSP has to be given 17 lakh tonnes of coal a year. But, the coal supply was reduced after a decision was taken to privatise VSP, he alleged.
This has forced the VSP to depend on APEPDCL (Eastern Power Distribution Company Limited of AP), forcing the steel plant to spend ₹90 crore a month for the purchase of power from EPDCL. VSP was not in a position to pay arrears to the tune of ₹140 crore, and EPDCL has issued notices to the former for the payment of dues.
Mr. Lokanadham alleged that the State government was toeing the line of the BJP-led government at the Centre instead of ensuring the interests of the State. He demanded that the State government should intervene in the matter and take measures to save VSP from crisis.
