Ganta Srinivasa Rao opposes RINL disinvestment

Andhra Pradesh Minister for Infrastructure and Investment Ganta Srinivasa Rao today asked Prime Minister Manmohan Singh and Steel Minister Beni Prasad Verma to reconsider and review the decision to divest stake in Rashtriya Ispat Nigam Ltd (RINL).

I would like to bring to your notice, as a public representative from Visakhapatnam, that all trade unions and public are opposing the initiative of disinvestment of some stake in the steel plant. They are possessive about the plant and any sort of disinvestment proposal will dishearten the whole lot of public of this region, the Congress Minister said in a letter. 

Meanwhile, earlier in the day the central government decided not to proceed with the RINL initial public offer. According to an official statement, ...it is hereby informed that the Government has decided not to proceed with the (RINL) offfer programme currently. 

The statement came following the cancellation of the scheduled meeting of the Empowered Group of Ministers, headed by Finance Minister P Chidambaram. VSP (Vishakhapatnam Steel Plant), the first shore-based integrated plant in the country, was the end result of numerous agitations, shedding of blood and loss of lives of some activists who participated in the agitation for the steel plant, Rao said. 

As the employees contributed their best, Vizag Steel was able to make huge profit and become a pride of India, he said. In view of this, I request you to kindly reconsider and review the (disinvestment) proposal duly honouring sentiments of employees, general public and public representatives. 

Meanwhile, main Opposition Telugu Desam Party has demanded that Central Government immediately drop the proposal to divest its stake in RINL, the corporate entity of VSP. We are totally opposed to the sale of stake in Visakhapatnam Steel Plant. 

The TDP will launch an agitation if the Centre does not withdraw the move immediately, TDP Politburo member and Leader of Opposition in Legislative Council Dadi Veerabhadra Rao told reporters here today. 

PTI