A tweet on RINL that kicked up a political storm in AP

Visakhapatnam: A tweet issued by DIPAM (Department of Investment and Public Asset Management) on disinvestment of Rashtriya Ispat Nigam Limited, the corporate entity of Visakhapatnam Steel Plant has put the BJP-led NDA Government on a sticky wicket with political parties including Jagan Mohan Reddy-led YSRCP adopting an aggressive posture against the move.

While all the parties with divergent views admit the fact that the steel plant is a matter of pride for Telugu-speaking people in Andhra Pradesh and Telangana as it was established after 'Visakha Ukku Andhrula Hakku' agitation in the 1960s had claimed 36 lives, they differ their opinion on how to put RINL back on the track.

Even there are fissures in the BJP with its State president Somu Veerraju stating that no final decision had been taken on privatisation of RINL. BJP national general secretary and former Vizag MP Daggubati Purandeswari and BJP floor leader in Legislative Council PVN Madhav said they were hopeful of finding alternatives by convincing their leadership. BJP MP GVL Narasimha Rao, who met the agitating employees on Tuesday, said disinvestment would be made only in consultation with the stakeholders.

Ukku Parirakshana Porata Samiti, an umbrella organisation for employees' unions, is organising a relay hunger strike ever since the decision was made public by DIPAM through a tweet about a month ago. The samiti and the non-BJP parties are making preparations to observe a Statewide bandh on March 5. Farmers from Amaravati, who are in protest mode against shifting the capital to Visakhapatnam, also came here to express their solidarity with the striking employees of the steel plant.

In the tweet, DIPAM stated "CCEA (Cabinet Committee on Economic Affairs) on January 27 had given in principle approval for 100% strategic disinvestment of GOI shareholding in RINL along with management control by way of privatisation."

The steel plant was sanctioned in 1971 with an initial investment of Rs 4,890 crore by acquiring 22,000 acres from nearly 25,000 farmers. It has increased its capacity from 3 to 7.3 million tonne with an investment of Rs 16,300 crore. RINL's loan liability has gone up to Rs 22,000 crore pushing it to a severe resource crunch.

"Lack of captive mines is the major handicap for the plant's losses," YSRCP parliamentary party leader V Vijayasai Reddy said during a recent padayatra to the plant.

There is no end to trading and counter trading of charges against each other between YSRCP and Telugu Desam Party. While YSRCP went to the extent of offering to take over the plant by bidding by the State Government if required, the TDP alleged that there was tacit understanding between the BJP and the YSRCP.

Even the Left affiliated CITU and AITUC alleged that Union Steel Minister Dharmendra Pradhan had gone on record saying that the State Government had been informed on MoU signed with Korean giant POSCO on entering into a joint venture with RINL to set up a greenfield steel plant on the premises of VSP, Chief Minister YS Jagan Mohan Reddy during his recent visit to the city told the union leaders that he would not allow POSCO to step into VSP premises. He had said that the POSCO team met him sometime ago to explore investments at Krishnapatnam and other places.

Reddy's suggestion that RINL could pool up resources by converting 7,000 acres of surplus land into residential plots and promised that the State Government would get land conversion clearance immediately if such a proposal was made.