Stop sale of assets of Visakhapatnam steel plant: CPM

Centre should allot captive mines to Vizag steel plant, provide working capital and railway rakes as a permanent solution, said M Jaggunaidu

Visakhapatnam: The Communist Party of India (Marxist) has demanded withdrawal of the decision to sell lands and assets of the Visakhapatnam steel plant in the city.

CPM district secretary M Jaggunaidu on Monday criticised the move to temporarily run the steel plant by selling its properties and said that the Centre should instead allot captive mines to the steel plant, provide working capital and railway rakes as a permanent solution. There was no need to sell the assets and the plant would land in profits, he added.

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“What the Centre has given to the steel plant till now is only Rs 4,890 crore. But the plant has paid the Centre as much as Rs 50,000 crore by way of taxes and dividend so far. The Centre has allotted captive mines to other steel plants at Bhilai, Rourkela, Bokaro and Durgapur and even to private sector plants. Due to lack of own mines, the Visakhapatnam steel plant is forced to spend an additional Rs 2,000 on every ton of steel produced, and captive mines will help it run into profits,” he pointed out.