CHANDIGARH: The Central Government decision to privatize the steel plant at Visakhapatnam is neither prudent from the public interest point of view nor in tune with the sentiments of the people, said EAS Sarma, former Secretary to the Government of India in an open letter to Prime Minister Narendra Modi.
He has demanded that no decision should be taken without consulting the State, the State legislature, the employees, and the public at large to sell 100% equity in Vizag Steel Plant, a mascot of development, to private agencies.
He mentions that the plant produces 7.3 million tonnes of steel annually and employs more than 17000 employees and supports a large number of auxiliary industries.
The value of the land with the company would be in excess of Rs 150, 000 crores. When the State government handed over around 2000 acres of such valuable land to a private port some years ago at a nominal price, there was widespread public anger against that decision. The proposal now to hand over RINL to private companies including a foreign company would therefore be highly inappropriate.
Sarma writes the Legislative Assembly of the State should have an opportunity to consider the proposal before the Centre can take a decision. Similarly, the employees whose future depends on such a far-reaching decision need to be taken into confidence fully.
He says that that to say that a private company is going to run it more efficiently is a myth that is well understood by the people.
Padamjit Singh Chief Patron All India Power Engineers Federation (AIPEF) said that power sector employees see a parallel between the government's
policy of privatization of electricity and the move to sell out the steel plant.
AIPEF urges the Prime Minister must give serious consideration to the points contained in the letter of EAS Sarma and scrap the proposal to privatize the Vizag steel plant.