TDP leader Ganta Srinivasa Rao resigns in protest against privatisation of Vizag Steel

TDP MLA Ganta Srinivasa Rao on Friday resigned from his post in protest against the proposed privatisation of the Visakhapatnam steel plant. Stating that locals cannot digest the plant's privatisation, Rao called on Andhra Pradesh Chief Minister YS Jagan Mohan Reddy to pressurise PM Narendra Modi to revoke the decision. 

The former minister also said that he would launch a non-political joint action committee as a move of agitation asking the Centre to roll back its decision to privatize Rashtriya Ispat Nigam Limited that has a steel plant in the city. 

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Rao, representing the north Assembly constituency in Visakhapatnam, said his resignation letter has been sent to the Speaker of the House. Meanwhile, all trade unions affiliated with the steel plant and civil societies continued their stir for the two days, in protest against the move to privatize the steel plant. 

READ | TDP MLA Resigns In Protest Over Move To Privatise RINL

CM Reddy urges PM Modi to reconsider disinvestment

Earlier in the day, CM Jagan Mohan Reddy wrote a letter to Prime Minister Modi, urging the government to reconsider its plan of disinvestment of the Visakhapatnam Steel Plant. He also suggested immediate measures to adopt in order to strengthen the viability of the plant. He contended that the plant would become a profitable venture given some support from the Central Government instead of taking the disinvestment route. 

Visakhapatnam Steel Plant is the largest public-sector industrial unit in the state creating employment opportunities for close to 20,000 people directly and other indirect employment opportunities in the city of Visakhapatnam. It is India's first shore-based integrated steel plant, the Andhra CM said as he expressed his assurance to work in tandem with the Union Government to "revive the plant for unlocking the greater value to the society and in particular to the people of Andhra Pradesh."

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The Cabinet Committee on Economic Affairs (CCEA) has given approval for 100% strategic privatisation of steel-maker Rashtriya Ispat Nigam Limited (RINL) including the giving up of management control by way of privatisation. RINL is a Corporate entity of Visakhapatnam Steel Plant Ltd. The RINL strategic sale proceeds would be part of the disinvestment target for the next fiscal. The government has budgeted Rs 1.75 lakh crore from disinvestment in the 2021-22 fiscal beginning April 1.

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