Andhra Pradesh State government is planning to participate in the bidding for the Visakhapatnam Steel Plant, if the Centre goes for disinvestment.
The state government, in principle, had decided to join the race and stake its claim.
Chief Minister Y S Jagan Mohan Reddy, in his letter to Prime Minister Narendra Modi had forwarded some measures to revive the sick plant.
If the Central government fails to implement these revival plans, the state government might go on the same lines if it gets the plant in the bidding.
The chief minister had advised the Central government to convert all the outstanding loans as equity shares and thus reduce the debt burden on the plant.
Similarly, the vast extent of land available for the steel plant could also be utilised to raise funds, if one goes by the chief minister’s letter.
The other and most important suggestive measure that the chief minister forwarded was allocation of mines for the plants for its consumption.
The captive mining would bring down the raw material cost for the plant and thus can reduce the financial burden.
Minister for Industries, Mekapati Gowtham Reddy, had hinted at the government’s participation in the bidding if required.
This would give an edge to the Jagan Mohan Reddy government among the people, who are in agitated mood with the disinvestment plans of the Central government.
The employees and the people have already started raising their voice against the disinvestment plans of the Modi government.
These dissent voices would turn positive to Jagan Mohan Reddy’s government if the State acquires the steel plant.