The Hindu : Andhra Pradesh / Visakhapatnam News : MP dubs delay in VSP expansion a blunder

Online edition of India's National Newspaper
Sunday, May 15, 2005

Andhra Pradesh

Andhra Pradesh - Visakhapatnam

MP dubs delay in VSP expansion a blunder

Staff Reporter

Should have been done during bad days: Steel panel member

VISAKHAPATNAM: The Rajya Sabha member and Steel Consultative Committee member, Jibon Roy, on Saturday said that the powers-that-be had committed a strategic blunder by delaying the expansion of Visakhapatnam Steel Plant.

"It should have been done when VSP had a rough phase before it achieved a turnaround. One should plan about a better future during its bad days,'' he told a seminar on VSP expansion conducted by the Centre of Indian Trade Unions (CITU) at Ukkunagaram.

The CITU-affiliated Steel Employees Union honorary president, Ch. Narsinga Rao, its president, V. Dhanraj, the general secretary, N. Rama Rao, and the VSP Deputy General Manager (environment), L.M. Rao, spoke. Mr. Roy said that the domestic steel sector looked up after a boom in most parts of the world. The boom time might continue for a few more years. The problem would aggravate after China expand its overseas market, he said.

Consumption hike

Advocating inclusion of various aspects of the economy in the agenda of trade unions, he said that they should also try to increase the consumption of steel.

The per capita steel consumption in India was in the range of 29 to 30 kg. as against 400 kg in the developed countries.

Mr. Roy, who is also the all-India CITU secretary, said that India's steel production was likely to become 100 million tonnes by 2020 as against the present 30 million tonne. Hence, the per capita consumption should go up to 400 kg.

He found fault with the Government's approach by not promoting steel in construction. "The Central Public Works Department still promotes cement and follows the norms fixed by the British,'' he lamented.

Not much growth

The VSP Director (personnel), K.A. Naidu, admitted that there was not much growth on the production front in the steel sector during the last five to six years.

Growth was visible only in the private sector, he noted, adding that all of a sudden China had emerged as a big force.

VSP was keen on doubling its capacity within a 48-month schedule, he said and hoped that the plan submitted five months ago, would be cleared soon.

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