Less Turnover Is Just An Excuse to Privatise Vizag Plant?

Tue Jul 26 2022 13:31:23 GMT+0530 (IST)

The Bharatiya Janata Party-led Union government came up with the National Monetisation Pipeline (NMP) plan. Under this, the government had listed a few assets which will be privatized to gather money so that the same would be used in improving the infrastructure facilities. The assets would be privatized in a phased manner.

The iconic Vizag Steel Plant is one such asset that was listed by the union government to privatize. Since the idea was pitched, the union government has been saying that the Vizag steel plant is not doing well in terms of producing steel and hence privatization is inevitable.

Now the union government said that the Vizag Steel Plant recorded good numbers in production, sales, and turnover between 2021 to 2022. The centre said this in the Parliament House in a written reply.

Union Minister of State for Steel and Rural Development Faggan Singh Kulaste in a written reply said that the Rashtriya Ispat Nigam Ltd (RINL)'s turnover stood at Rs 28,214.76 crore. Compared to the previous year, the turnover increased by more than ten thousand crores.

The numbers mentioned by the Central Minister said that the Vizag Steel Plant recorded the best turnover for two consecutive years. Between 2021-22, the Vizag Steel Plant recorded a turnover of more than Rs 28,000 crores.

But the surprising thing is that despite giving the details of the turnover recorded by the Vizag Steel Plant in the past five years and the plant doing exceptionally well for the past two years, the union government did not say that it will privatize the plant.

All these days, the union government has been saying that it wants to privatize the plant given the low turnover and production of the steel plant. Now the plant is doing well and this was not enough for the union government to take back the proposal to privatize the plant.

Looks like the low turnover and less turnover of the Vizag Steel Plant is just an excuse the union government is using to privatize the plant. If this is the reason, then the union government would have taken the decision back.