CPI(M) State secretary P. Madhu demanded that the State government pass a resolution in the Legislative Assembly against the transfer of nearly 4,000 acres of land belonging to the Visakhapatnam Steel Plant (VSP), to South Korean steel-maker POSCO, alleging that it was aimed at privatising the VSP in the guise of forging a Joint Venture (JV) with POSCO.
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In a letter to the Chief Minister Y.S. Jagan Mohan Reddy, a copy of which was released to the media, Mr. Madhu stated in a press release that a ‘cell’ was also set up in the VSP administrative office to take the proposed JV forward.
He said that the Central government has mooted the JV and it was reportedly taking necessary steps. It could get POSCO set up the steel plant at Kadapa, a major project envisaged in the A.P. Reorganisation Act.
“The VSP would have to garner funds to the tune of ₹10,000 crore as part of the JV. Once it (VSP) starts making losses due to the interest burden entailed by its borrowings, the Centre would hand it over to the JV partner (POSCO) on the ground that turning it around would be impossible,” said Mr. Madhu.
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Keeping this in view, the State government should talk to Centre and ensure that VSP was not privatised as the stakes for A.P. were high, he added.