GVMC resolve against RINL privatisation

Visakhapatnam: IN an unprecedented development, Greater Visakhapatnam Municipal Corporation (GVMC) on Friday unanimously adopted a resolution urging Centre to drop its decision for privatisation of Rashtriya Ispat Nigam Limited, the corporate entity of Visakhapatnam Steel Plant. The resolution was moved by Mayor Golagani Venkata Kumari was supported by CPI (M) corporator M Ganga Rao. The resolution was passed by voice vote at the corporation meeting. The Mayor said the steel plant was the pride of Telugu speaking people of Andhra Pradesh and Telangana as it was established after an agitation known as 'Visakha Ukku Andhrula Hakku' claiming 32 lives in police firing. The demand was conceded by then Prime Minister Indira Gandhi in 1971.

Ganga Rao, who is also the president of CPI (M) city unit told Bizz Buzz that under the aegis of Visakha Ukku Porata Parirakshana Committee, they would intensify the agitation to bring pressure on the Centre to stop privatisation of RINL.

The Cabinet Committee on Economic Affairs (CCEA) gave its in-principle approval on January 27 for sale of RINL, its subsidiaries and joint ventures by way of privatisation. Union Finance Minister Nirmala Sitharaman had told the Parliament that RINL had incurred a debt liability of Rs 22,000 crore. Asset value of the Navratna company was estimated at Rs 32,000 crore.

Chief Minister YS Jagan Mohan Reddy wrote two letters to Prime Minister Narendra Modi strongly opposing privatisaiton of RINL and suggested allotment of captive iron ore mines, conversion of loans into equity and monetisation of surplus lands to an extent of 7,000 acres as a way out to wipe out the losses and liabilities thereby preventing privatisation.