At a time serious concerns are being expressed that the Narendra Modi-led government is moving fast towards the privatization of the Visakha Steel Plant, the Union Steel Ministry released Rs 2,000 crore for the plan enabling its full-pledged functioning.
This was in addition to Rs 500 crore released very recently, that too after two days of Chief Minister Chandrababu Naidu giving assurance that he will do whatever needed to prevent privatization of the plant. The present move indicates that the Center is making its own efforts to protect the status of the Steel Plant, which was attached to the sentiments of Andhra People, before hurriedly going for privatization.
While releasing funds, the Steel Ministry stipulated that the funds released should be used only for legitimate payments. State Bank of India (SBI) has been entrusted with the responsibility of using the funds. SBI also suggested that it should play a key role in the recently announced use of Rs.2,500 crore.
It has assured that these funds will be available by 23rd of this month. While there are three blast furnaces in the steel plant, due to shortage of raw materials, two of them have been shut down and currently only one is producing. Now that the funds are available, the Ministry of Steel has ordered the two blast furnaces should run at full capacity.
It has promised to supply the necessary raw materials. It has been asked to complete the maintenance work in all departments by the end of October and full production from November. As it has been decided to run two of the three blast furnaces in the steel plant, it has decided to send the excess employees on deputation to other central government institutions.
A plan has been prepared to reduce the burden of salaries to that extent. As a part of this, the executive level officials have once again been called upon to come forward for those who are interested in going on deputation to the Nagarnar plant of NMDC.