Amarnath Blasts Coalition Over VSP Privatization
Former Minister Gudivada Amarnath has accused the coalition government of betraying public trust and failing to protect the employees of Visakhapatnam Steel Plant (VSP). Addressing the media at the YSRCP office, he said the alliance, which had promised to prevent privatization, has completely failed to deliver on its commitments.
Amarnath specifically targeted TDP chief N. Chandrababu Naidu, alleging that he did not instruct the Centre to halt privatization. He also accused the coalition of undermining workers’ movements. Contrasting with the support provided by the Steel Conservation Committee during the YSRCP regime, Amarnath warned that unless privatization of 32 VSP departments is immediately stopped, the party will launch agitations in collaboration with political allies and labor unions.
The coalition, including the TDP, had secured the Visakhapatnam parliamentary seat and other constituencies on promises to protect VSP, winning with a majority of around five lakh votes. Despite being in power for 14 months, the government has allowed privatization to proceed in 32 of the plant’s 45–50 departments. Notices for expressions of interest were issued on August 16, with workers reportedly facing intimidation.
Recalling the previous YSRCP government, Amarnath highlighted that former Chief Minister Y.S. Jaganmohan Reddy had opposed disinvestment in January 2021, in the presence of the Prime Minister, and had supported the Steel Conservation Committee while maintaining law and order during workers’ agitations.
Amarnath further stated that in the 2024 elections, Reddy had warned voters that supporting the coalition would equate to endorsing privatization. “Despite this warning, the coalition came to power. Now, the TDP is fully aligned with the Centre, and Chandrababu Naidu has ignored opportunities to intervene,” he said, pointing out that 32 workers lost their lives defending VSP, and now 32 departments face privatization.
VSP has witnessed massive layoffs and decommissioning over the past year. Following the coalition’s rise, 4,200 contract workers lost jobs, 1,150 employees opted for VRS, and another 1,000 layoffs are reportedly planned. Salaries have been pending for over three months, while essential benefits—including leave encashment, incentives, LTC, and LLTC—have been withdrawn.
Subsidized electricity for plant quarters has risen from Rs. 1 to Rs. 9 per unit. The Vimal Vidyalaya, funded through CSR, has been shut down, and hospital facilities curtailed, forcing employees to bear healthcare costs. Thousands of families have been affected, with 8–9 thousand layoffs reported in a single year. Of the Rs. 11,400 crore revival package, only Rs. 500 crore has been allocated to employees, while the rest went to banks at 1% interest.
Amarnath demanded immediate cancellation of privatization, reinstatement of laid-off workers, settlement of pending dues, and restoration of benefits. He also questioned whether the coalition intends to close VSP to benefit the ArcelorMittal Nippon Steel India (AM/NS India) Nakkapalli project, citing Chandrababu Naidu’s record of closing 64 public enterprises during his tenure.
The YSRCP will coordinate with political parties and labor unions to formulate an action plan under the party leadership.