Gulte News
The Union government which had plans to privatise the Vizag steel plant is considering to review its decision and this could be a big move.
Apparently Vizag steel plant is falling short of resources and with no captive mines, the factory is incurring losses after losses. Accordingly the Centre is planning to merge the Vizag steel plant with Steel Authority of India Limited (SAIL). If this happens, it would be a bigger relief for employees of Vizag steel plant.
The GoI sources say that instead of privatising the steel factory, merging it with SAIL looks a better alternative before the government. In that line, GoI is planning to sell the lands of Vizag steel plant to National Minerals Development Corporation (NMDC) and regarding the same, the government is in talks with the State Bank of India (SBI).
The talks are in preliminary stages said sources and the government of India believes that it could find a permanent solution to the loss making Vizag steel plant.
Though the employees union of Vizag steel plant is yet to get an update on this move, there are high chances of the union welcoming the decision.
In January 2021, the Cabinet Committee on Economic Affairs (CCEA) gave its approval for 100 percent disinvestment of government stake in Vizag steel plant. This decision invited an uproar from the employees of the factory.
