The Union government, which previously planned to privatize the Vizag steel plant, is now considering a review of that decision, which could have significant implications.
The Vizag steel plant has been struggling with resource shortages and, lacking captive mines, has faced continuous losses. As a potential solution, the Centre is contemplating merging the Vizag steel plant with Steel Authority of India Limited (SAIL). If this merger occurs, it could provide considerable relief for the plant’s employees.
Government sources indicate that merging the steel plant with SAIL is viewed as a more viable option than privatization. In this context, the government is also planning to sell the land of the Vizag steel plant to the National Minerals Development Corporation (NMDC) and is currently in discussions with the State Bank of India (SBI) regarding this matter.
These discussions are in the preliminary stages, and the government believes this approach could lead to a sustainable solution for the loss-making Vizag steel plant.
While the employees’ union at the plant has yet to receive official updates about this development, there is a strong possibility that they will welcome the decision.
In January 2021, the Cabinet Committee on Economic Affairs (CCEA) had approved the complete disinvestment of the government’s stake in the Vizag steel plant, a move that sparked significant backlash from the employees.
