Killing Vishakapatnam Steel Plant Before Selling?

BJP-led Central Government is firm on privatizing Vishaka Steel Plant. Despite the opposition from stakeholders, locals, and political parties of AP, they are adamant about it.

Before finding a suitable buyer, Center is cutting the lifeline of the Steel Plant. It has canceled the mines allotted for the Steel Plant’s coking coal requirement.

Rabodhi OCP Mines in Jharkhand are put up for auction already and the center even says the steel plant can participate in the auction and can get the mines if needed.

This has been revealed by the concerned minister himself in the Parliament.

According to the 2015 Mining Act, any company with 76% Government holding can take iron ore and coal from anywhere in the country. As of now, Center is still the major shareholder in the steel plant and is still denied of the coal mines.

In the previous financial year, the steel plant has registered operating profit. That means with this move, the steel plant will be killed.

But then, it comes as a surprise. Any company with profits will get better sale value. Why is the central government wants to have the steel plant in poor financial health before selling?