The Hindu : Andhra Pradesh News : Minister opposes merger of Vizag steel plant with SAIL

Online edition of India's National Newspaper
Sunday, Jun 12, 2005

Andhra Pradesh

Andhra Pradesh

Minister opposes merger of Vizag steel plant with SAIL

Special Correspondent

HYDERABAD: The Union Minister of State for Heavy Industries, Santosh Mohan Dev, on Saturday expressed himself against the move to merge the Visakhapatnam Steel Plant (VSP) with the Steel Authority of India Limited (SAIL) saying that status quo should be maintained.

Addressing a press conference after visiting the Bharat Heavy Electricals Limited (BHEL) unit at Ramachandrapuram here, he said the VSP had its own "basic advantages" as it was a shore-based one.

Paper for integration

The Andhra Pradesh Chief Minister, Y.S. Rajasekhara Reddy, should take up the need for maintaining the status quo with the Prime Minister, Manmohan Singh, and the Union Minister for Steel, Ram Vilas Paswan, he said. A paper was in circulation for the integration of steel plants, including the VSP. (Dr. Reddy had recently conveyed his Government's opposition to the Centre on the merger and said that it would affect Andhra Pradesh's development. The Leader of the Opposition, N. Chandrababu Naidu, too, had shot off a protest letter to the Prime Minister in this regard.)

On the Government's decision to divest 10 per cent of its equity holding in BHEL, he said it was in accordance with United Progressive Alliance's Common Minimum Programme.

15 p.c. for BHEL staff

After divestment, the Government's holding would still be in excess of 57 per cent. He said 15 per cent of the proposed divestment was to be reserved for BHEL employees. The revision of some perks and allowances for the employees would be announced soon. This divestment was meant to raise resources for the National Development Fund, a part of which would be for revival of sick public sector units. He said that he held discussions with the Chief Minister about the revival of sick undertakings, including two cement factories, Bharat Heavy Plates and Vessels and Hindustan Cables Limited. The possibility of writing off some liabilities and selling excess land were discussed and the Chief Minister promised to help, he added.

Nursing sick plants

Mr. Dev said he would send a team of officials on June 15 to discuss the issues with the Chief Secretary. "Three joint venture proposals were received for reviving cement plants in the State," he added. He said that seven of the 28 sick plants under his Ministry had turned around after receiving a Rs. 517-crore package. Mr. Dev addressed the employees and visited a special school set up by BHEL for mentally challenged children.

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