SAIL takeover would benefit VSP in all aspects: SAIL’s independent director Kasi Viswanatha Raju

He said that VSP employees will also be happy with the proposal

The Bharatiya Janata Party’s State General Secretary and Steel Authority of India’s Independent Director Sagi Kasi Viswanatha Raju on Wednesday (October 2, 2024) said that it would be a like a win-win situation for everyone if SAIL would takeover Rashtriya Ispat Nigam Limited (Visakhapatnam Steel Plant) which is a pride of Andhra Pradesh.

Mr. Viswanatha Raju who came to participate in Swachhata hi Seva programme in connection with Gandhi Jayanti in Srikakulam hoped that the State government would also take initiation for the takeover proposal which was mooted by him two years ago.

“The union government is holding a crucial meeting on VSP on October 8th in New Delhi. Chief Minister N. Chandrababu Naidu is expected to discuss the issue with the Finance Minister Nirmala Sitharaman and Minister of Steel H.D. Kumaraswamy. I am hopeful that the outcome of the meeting will cheer everyone up . If everything goes well, VSP will overcome all its financial hurdles and other problems,” said Mr. Viswanatha Raju while speaking to the media here.

According to him, VSP has been registering financial losses since 2016 and its loss is around ₹5,000 crore in 2023-24 financial year. The plant is unable to procure raw materials and fails to meet its debt obligations. SAIL which is the one of largest steel producers can put VSP on the right track as it has more bargaining capacity in purchase of raw material and iron ore. SAIL would have a strong presence in the Southern part of the country.

“SAIL’s cost of borrowing will be much lower than that of VSP. It can save around ₹400 crore interest amount annually for Rashtriya Ispat Nigam Limited which is forced to take loans at higher interest rates currently. Takeover proposal would lead to creation of the mega Central Public Sector Enterprise (CPSE) in the country. Fortunately, SAIL management has expressed its interest in the proposal as it would benefit the organization in the long run” said Mr. Viswanatha Raju.

He said that VSP employees will also be happy with the proposal and it was explained very clearly to the Minister for IT and Education Nara Lokesh who recently visited Visakhapatnam. “Mr. Lokesh was requested to explain the benefits to the Chief Minister who in turn can raise the issue in the crucial meeting to be held on October 8 in New Delhi,” he added.

Published - October 02, 2024 02:04 pm IST