The central government has said that the privatization of the Visakhapatnam steel industry is a fact.
Visakha clarified that the state government has no stake in the steel. He said that he would talk to the state government if necessary in the matter of privatization. He said the consultations would be on issues that require the intervention of the state government.
Union Finance Minister Nirmala Sitharaman on Monday gave a written reply to a question by YSSRCP MPs MVV Satyanarayana and Goddeti Madhavi on the issue of privatization of Visakhapatnam steel.
At a meeting on January 27 this year,
Nirmala Sitharaman said the Cabinet Committee on Economic Affairs had given in-principle approval for the withdrawal of 100 percent investment as part of the privatization of Rashtriya Ispat Nigam Limited (Visakhapatnam Steel Industry). The withdrawal of government share is to bring inappropriate investments for utilization, capacity expansion, technology enhancement, and better management practices.
This will increase direct and indirect employment opportunities along with production, he said. Sitharaman also said that the terms of the share purchase agreement applicable to the purchase of shares by partners and employees.
Steel Minister Dharmendra Pradhan also reiterated
He said that the state government has no share in assets worth Rs 32,000 crore and debts of Rs 21,000 crore. Dharmendra Pradhan gave a written reply in the Lok Sabha on Monday to a question posed by YSRCP MPs Margani Bharat, Balashouri, and TDP MP Rammohan Naidu on Visakhapatnam steel assets and liabilities.
He described the performance of the Visakhapatnam steel industry in the last five years. The value of the Visakhapatnam steel plant, equipment, and assets stood at Rs 32,022.32 crore as of December 31, last year. The government’s equity share investment stood at Rs 4,889.85 crore. He also had a debt of Rs 21,236.01 crore as of December 31 last year.
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