CITU Slams TDP Over VSP Privatisation, Alleges Centre-Backed Strategic Sale and Mass Layoffs

Trade union leaders have strongly criticised the Centre’s move on the strategic sale of Visakhapatnam Steel Plant (VSP). CITU State general secretary Ch. Narasinga Rao accused the TDP-led alliance government in Andhra Pradesh of “supporting the Centre’s move” following remarks by TDP State president Palla Srinivasa Rao.

A notification issued on August 16 invited Expression of Interest (EOI) for the operation and maintenance of 34 wings of VSP, with applications due by September 9.

Speaking to media people, Srinivasa Rao had stated that while the NDA government remained committed to protecting VSP, some “harsh decisions” were unavoidable, including partial privatisation to enhance productivity and reduce costs.

Responding to these comments, Mr. Narasinga Rao condemned the TDP leader for “justifying the firing of workers in the name of efficiency.”

“The VSP has some of the best workers in the country, and the quality of Vizag steel remains impeccable. Concealing these facts, the ground has been prepared for handing over the VSP to Arcelor Mittal,” he alleged.

He further accused the Centre, with support from the TDP and JSP, of terminating the services of 5,000 contract workers. Highly qualified officers and employees were also pushed out in two phases under the Voluntary Retirement Scheme (VRS).

Challenging Mr. Srinivasa Rao, Mr. Narasinga Rao demanded proof of allegations regarding ‘ghost workers’ and alleged trade union corruption.

Disputing TDP claims, he said all three blast furnaces at VSP were operational during the YSRCP’s tenure. “The Centre deliberately shut down two blast furnaces in 2021, causing losses of Rs 7 crore as part of its strategic sale plan. While VSP, with an annual capacity of 50 lakh tonnes, was given a loan of Rs 11,440 crore, the Bhadravathi Steel Plant in Karnataka, producing 50,000 tonnes, received a grant of Rs 18,000 crore,” he stated.

He also questioned the Centre’s priorities, noting that despite Andhra Pradesh having 23 MPs, VSP did not receive comparable support to Bhadravathi Steel Plant.

CITU district general secretary RKSV Kumar, Public Sector Coordination Committee convener S. Jyothiswara Rao, and Steel Plant Employees Union general secretary U. Ramaswamy were present during the statement.