VISAKHAPATNAM: Members of the Visakha Steel Workers Union (VSWU) and all major trade unions of Visakhapatnam Steel Plant are up in arms against the government’s decision to go ahead with the disinvestment of VSP.Talking to media here on Friday, leaders of the VSWU said UPA government is planning to issue a notification for disinvestment of VSP shortly.VSWU president D Adinarayana said the VSP had a turnover of Rs. 12,000 crore in the last fiscal with a net profit of Rs. 700 crore despite lack captive iron ore mines.If the plant has its own mines, VSP would register a net profit of over Rs. 2,000 crore, he said.The VSP which possesses Rs. 50,000 crore assets, has paid Rs. 20,000 crore in the form of taxes to the government since its inception, he said.Also, the plant has invested Rs. 520 crore to acquire raw material, especially iron ore for the past two years, they said.VSWU general secretary N Ramarao said the government plans to offload its share up to 10 per cent which is to the tune of Rs. 480 crore.Instead of providing iron ore mines to the plant, government is trying to sell its shares to private parties, he alleged.After ‘Visakha Ukku Andhrula Hakku’ agitation in 1990, the VSP increased its production capacity from 3 million tonnes to 6.3 million tonnes, he said.VSWU members said they already warned the management against Navratna status for VSP as a company bestowed with that status will go through disinvestment process within two years as part of reforms.
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