Steel Executives Association Ask TDP State President For Immediate Assistance For RINL
Palla Srinivasa Rao was elected with the largest majority in the state and was appointed as the state president of the Telugu Desam Party
The representatives of Visakha Steel Executives Association (SEA) congratulated and felicitated Gajuwaka MLA Palla Srinivasa Rao, who was elected with the largest majority in the state and was appointed the State President of the Telugu Desam Party (TDP).
In this meeting SEA, requested for immediate assistance from the State Government on the problems currently faced by Visakha Steel Plant (RINL), which inclidelack of working capital due to which RINL is not able to buy enough coal and therefore, they have been buying electricity from EPDCL for the past two years to run the plant continuously. As a result of this, the electricity bills have increased from Rs. 20 crores per month to Rs. 90 to Rs. 100 crores a month.
They apprised the State TDP President that for the last six months, the EPDCL officials have been pressurizing them to pay the bills every week and as Visakha Steel Plant is facing severe financial crisis, it and be allowed to pay electricity bills in installments for at least six months.
The state government has made consistent efforts over the last two years to immediately extend the leases for manganese and sand mines through the mining department. In addition, under the previous government, there was a push to purchase steel from Visakha Steel for state government projects. This included a proposal to pay at least two thousand crore rupees in advance and to procure steel products from Visakha Steel within the financial year.
In April of last year, the Steel Executives Association (SEA) requested that the state government sign an MoU with Rashtriya Ispat Nigam Limited (RINL) towards this goal. A one-man committee was appointed by the state industries ministry in June 2023, and the AP District Industries General Manager visited the Visakha Steel plant, held meetings with plant officials, and submitted a report in August 2023. Unfortunately, this report was sidelined.
SEA representatives have appealed to Palla Srinivas Garu to expedite the process so that steel can be used in Amaravati constructions and other state government projects. They also sought assistance from the Honorable MLA and President of TDP to secure financial support from the central government, MPs, and concerned ministers, and to merge Visakha Steel with Steel Authority of India Limited (SAIL).
Sri Palla Srinivas responded by assuring that he would bring this matter to the attention of Chandrababu and ensure prompt action. His priorities include keeping Visakha Steel in the government sector, achieving full-scale production, and providing jobs for the displaced. He committed to working continuously towards these goals and promised to meet with MP Shri Bharat Garu and CM Ramesh Garu to discuss feedback from Visakha Steel management and secure the necessary support from both central and state governments.
The meeting was attended by SEA President Katam Chandra Rao, Vice President Chandra Venkateswara Rao, General Secretary KV D Prasad, Joint Secretary Narasimha, and working group members Mutyala Satyanarayana Jagadish Rao, Apparao, and Suryanarayana.
