Telangana’s Singareni Collieries is contemplating bidding for Vishaka Steel Plant. This is more of a political strategy of KCR to expand the base of BRS in Andhra Pradesh, many believe. But does Telangana really stand a chance?
A year ago, Central Government released some directives preventing the participation of any state government or any government organization like Singareni in the disinvestment of any Central Government company like the Steel Plant.
Transferring the role of management in central PSEs to other government bodies or state governments will not correct the deficiencies and will also undermine the objectives of the new disinvestment policy. Hence the center took this decision.
The Central Government’s permission is mandatory in case there is a public interest involved.
In the ongoing political scenario, it is unlikely the Central Government will give such permission.
In Singareni, the Central Government holds a 49% stake. If it allows Singareni to bid for the Steel Plant, the purpose of the disinvestment will be lost.
Telangana Government may bid on the behalf of Telangana Mineral Development Corporation or Water Resources Department. That will eliminate the loss to the Central Government since there is no stake.
But still, the Central Government’s permission is necessary which is very unlikely.
