VSP privatisation: AITUC warns of intensified stir, demands merger with SAIL

The All India Trade Union Congress (AITUC) has warned of intensified protests if the central government proceeds with its plan to privatise Visakhapatnam Steel Plant (VSP). The union has also demanded the plant's merger with Steel Authority of India Limited (SAIL) as a means of providing financial relief.

Addressing a protest on Sunday, marking the 1,977th consecutive day of a sit-in near the Gandhi statue at the Greater Visakhapatnam Municipal Corporation (GVMC) office, AITUC general secretary D. Adinarayana recalled the struggles that led to the establishment of VSP. He cited the mass movement that adopted the slogan “Visakha Ukku, Andhrula Hakku” (Visakha steel is the right of the people of Andhra Pradesh) to highlight the plant's historical significance.

Mr. Adinarayana asserted that any move toward strategic sale, privatisation, or asset monetisation of the plant is unacceptable. He urged the Centre to abandon its privatisation plans and instead implement a comprehensive revival package. Key demands raised during the protest included financial assistance, adequate working capital, and allocation of captive iron ore mines to ensure the plant's long-term viability.

“The agitation to protect VSP will continue relentlessly until the threat of privatisation is permanently removed and the plant is fully secured under the public sector,” AITUC leaders said. The protest drew strong solidarity from workers, trade union leaders, and citizens.

VSP, a major public sector undertaking in Andhra Pradesh, has been facing financial difficulties, with the central government previously issuing a preliminary information memorandum for its strategic disinvestment. The plant's employees and unions have consistently opposed privatisation, arguing that it would lead to job losses and affect the region's economy. The demand for merger with SAIL stems from a belief that a stronger parent entity could help sustain operations and protect workers' interests.

The sustained protest at Visakhapatnam reflects a broader concern among trade unions over the privatisation of public sector enterprises. The Centre has maintained that strategic disinvestment is aimed at improving efficiency and reducing the fiscal burden, but unions contend that such steps often disregard workers' welfare and regional development. The AITUC's warning indicates that the issue remains a flashpoint as the government continues its disinvestment push.

The 1,977-day sit-in is one of the longest-running protests in the industrial sector, underscoring the depth of opposition among VSP stakeholders. As the stalemate continues, both the union and the government will need to engage in dialogue to find a resolution that addresses financial sustainability while preserving public ownership and employment.