VISAKHAPATNAM: The Centre of Indian Trade Unions (CITU) has opposed the reported move of Visakhapatnam Steel Plant (VSP) to invite private investment to the tune of Rs.1,000 crores for setting up the additional power and air separation plants required under its expansion plan, and warned of a massive agitation to stall it.

Tough talk

Announcing this at a media conference here on Thursday, district general secretary of CITU A. Ajay Sarma said: "We have successfully warded off private investment move in VSP in early 2000 through agitation. Now the Government seems to be determined to introduce privatisation in some form or the other. But we will not allow it, come what may.''

VSP which had a surplus of Rs. 5,000 crores could easily meet the additional requirement of funds within the three years, he said and added that during the last three years the plant had earned profits of Rs. 500 crores, Rs.1,500 crores and Rs.2,000 crores, respectively.

Mr. Sarma also demanded captive mines for VSP as it was the only public sector steel plant without its own mines.

"POSCO in Orissa which is yet to start work has been sanctioned iron ore mines. The joint venture company with South Korea is now exporting iron ore directly against the nation's interests,'' he said.

Raw materials

General secretary of Steel Plant Employees Union (SPEU) N. Rama Rao alleged that by privatising the additional thermal power plant and the air separation plant (ASP), the Government aimed at selling the power as well as oxygen and acetylene which had ready market.

Noting that the external requirement of raw material in VSP was as high as 37 per cent compared to Tata's nine per cent and SAIL's 14 per cent, he said the VSP profits could have been much higher if it had captive mines.

SPEU president V. Dhana Raju said that the additional burden incurred by VSP on raw material was Rs. 360 crores per annum, which was the reason why it should immediately be allocated captive mines.

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