Mount pressure on Centre to halt VSP privatisation, CPI leader Eswaraiah urges Chandrababu Naidu

Communist Party of India (CPI) General Secretary G. Eswaraiah has urged Chief Minister N. Chandrababu Naidu to put pressure on the Union Government to withdraw the Visakhapatnam Steel Plant (VSP) privatization plan.

In a letter to Mr Naidu on Thursday, Mr Eswaraiah sought allocation of existing mines and adequate resources to revive the plant as a viable public sector unit.

Mr. Eswaraiah recalled that between 2017 and 2020, the BJP-led government at the Center had attempted to privatize many steel plants in Tamil Nadu, Karnataka, West Bengal and Chhattisgarh, but withdrew its decision due to resistance from political parties and people’s movements. “Andhra Pradesh continues to face discrimination,” he said, alleging that the Center was deliberately pushing VSP into losses to justify privatisation.

He said VSP, a Navratna company since 2009, is among India’s most productive steel producers and contributes around ₹58,000 crore to both the Center and the State despite receiving less than ₹5,000 crore from the total Central investment. With 20,000 acres of strategic coastal land, two thermal power plants and modern infrastructure, the valuation of the facility is around ₹4 lakh crore, he added.

Condemning Mr Naidu’s reported remarks calling VSP a “white elephant”, Mr Eswaraiah argued that the crisis was solely due to the rejection of captive mines. He criticized the state government for offering huge incentives to private players while neglecting VSP.