Visakhapatnam

TSR urges Centre to allot captive mines to VSP

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‘The steel plant is forced to buy iron ore at a higher price from NMDC’

Rajya Sabha member and former Union Minister for Mines T. Subbarami Reddy on Wednesday urged the BJP-led NDA government to allot captive mines to Visakhapatnam Steel Plant (VSP).

During the ‘Zero Hour’ in the Rajya Sabha, the Congress leader described the VSP as the pride of Andhra Pradesh.

“The steel plant was set up after the sacrifice of many people. But unfortunately, captive iron ore mines have not been allotted to the plant as on today, forcing it to buy the raw material at a higher price from the NMDC,” he pointed out.

Mr. Reddy further said that due to high cost, the steel plant was incurring losses.

Performance card

“In 2018-19 financial year, the VSP registered a turnover of ₹20,844 crore, with a profit of ₹97 crore. In 2019-20 fiscal, the plant is planning to achieve a turnover of ₹25,000 crore,” the MP said.

Despite several representation by the trade unions, the issue is yet to be considered, Mr. Reddy said.

He urged Union Steel Minister Dharmendra Pradhan to allow the plant to procure iron ore mines from Odisha and Jharkhand immediately to prevent it from becoming a ‘sick unit’.

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Printable version | Dec 11, 2019 5:32:51 AM | https://www.thehindu.com/news/cities/Visakhapatnam/tsr-urges-centre-to-allot-captive-mines-to-vsp/article30170847.ece

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