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Tata's Show Interest In Taking Over Vsp
By: Tupaki Desk | 18 Aug 2021 7:18 AM GMT
It now appears almost certain that the Tatas are going to take over the Vizag Steel Plant. Tata Steel CEO TV Narendran on Tuesday said that Tatas were interested in taking over the VSP and that they would make a bid to submit an expression of interest.
The Tatas feel that there is a great scope for inorganic growth and also because it is a plant located in a coastal town. This makes transhipment easier. Easy access to Gangavaram is another favourable factor for the taking over, sources say. Tata's expression of interest comes at a time when the employees unions are on a warpath protesting against the privatisation of the steel plant.
The VSP owns and operates a 7.3 million-tonne-capacity plant and is the only shore-based integrated steel plant. The government, as part of its disinvestment drive, gave an approval for 100 per cent disinvestment of the government stakes. The in principle nod for disinvestment was given on January 27 by the Cabinet Committee on Economic Affairs.
Meanwhile on Tuesday, a large number of the VSP employees staged a protest staunchly opposing the privatisation. The employees demanded a revocation of the tenders and vowed to prevent the bidding process. They wanted the government to stop the bidding process.
The Tatas feel that there is a great scope for inorganic growth and also because it is a plant located in a coastal town. This makes transhipment easier. Easy access to Gangavaram is another favourable factor for the taking over, sources say. Tata's expression of interest comes at a time when the employees unions are on a warpath protesting against the privatisation of the steel plant.
The VSP owns and operates a 7.3 million-tonne-capacity plant and is the only shore-based integrated steel plant. The government, as part of its disinvestment drive, gave an approval for 100 per cent disinvestment of the government stakes. The in principle nod for disinvestment was given on January 27 by the Cabinet Committee on Economic Affairs.
Meanwhile on Tuesday, a large number of the VSP employees staged a protest staunchly opposing the privatisation. The employees demanded a revocation of the tenders and vowed to prevent the bidding process. They wanted the government to stop the bidding process.
