CPI-M alleges TDP government trying to handover 2,500 acres of VSP land to corporates

CPI-M Central Committee Member K. Lokanadham has alleged that the 232-page document, in the name of Visakhapatnam Economic Region (VER), released by the TDP-led Alliance government in the State, shows 2,500 acres of Visakhapatnam Steel Plant (VSP) land will be given to corporate groups.

Speaking to the media along with CPI-M corporator Ganga Rao, here on Wednesday, Mr. Lokanadham said that the proposed VER extends over nine districts from Srikakulam to Kakinada and private investors would be given lands to set up industries. The Chandrababu Naidu led government has planned to hand over 2,500 acres of VSP land as part of the VER. The State government was planning to convert the ₹2,400 crore arrears towards electricity payable by the VSP into equity and take possession of VSP lands as compensation for the same.

Describing it as a conspiracy, he demanded that the State government should make an open announcement on withdrawal of this proposal immediately. He also sought that the VSP lands should be used only for expansion of the steel plant. The National Mineral Development Corporation (NMDC) has already taken 1,100 acres of VSP land on lease for 33 years. The land has remained vacant without construction of the yard. There was talk that the Centre was planning to handover this land to the Adani Group.

The CPI-M leaders alleged that after the TDP, JSP, BJP Alliance government came to power in the State, efforts were being made to push the plant into losses, while making statements to the contrary. During the last one year, around 6,000 contract workers were terminated illegally, and over 1,700 permanent workers were shown the door in the name of VRS. Now, a notification was issued for a third round of VRS. They alleged that migrant worker from other States are being deployed to work in their place.

They also alleged that instead of making coke in the plant, it was being procured at an additional cost of ₹8,000, a tonne, from outside to meet the needs of the sinter plant, thus resulting in an increase in the costs of raw material from 60% to 78%. Due to this, though production has increased at VSP, the plant is incurring huge losses. The failure to repair damaged equipment is also contributing to the losses, with the plant incurring ₹780 crore during the last nine months. The government and the plant management are blaming the workers for the losses, which is contrary. They alleged that the Chief Minister was frequently indulging in a malicious campaign on VSP and its workers in a bid to send the wrong signals to the people.