The Vizag steel plant (VSP) which is heading towards privatisation has got a big bidder and it’s none other than Tata Steel. The company’s CEO and MD, TV Narendran has acknowledged Tata Steel showing full interest in acquiring the steel plant and added that it would have huge advantages.
“Yes! Also, because for inorganic growth for long product opportunities. There is a great opportunity because it is a coastal plant so there are many advantages,” Narendran in his first reaction.
However, the government of India should follow the due process in privatisation by inviting bidders. If there is an auction, the GoI has set a base price. VSP posted a venue of Rs 18,000 crore for the year 2020-2021 and the net income is Rs 96.71 crore for the financial year 2018-19.
Vizag steel plant is India’s first shore-based integrated steel plant spread across 22,000 acres of land. More than the steel plant, the land owned by VSP is vital here and so Tata Steel is eyeing to acquire it.
This acquisition will also give Tata Steel more access to Southeast Asian markets and also the domestic market where it is already a dominant force. But Tata did not file its Expression of Interest (EoI) to the ministry of steel which operates the VSP.
Currently Tata Steel is eyeing Odisha-based steel maker Neelachal Ispat Nigam Ltd (NINL). If Tata manages to get NINL and VSP, it takes over a huge share in India’s steel production.
However, as and when Tata Steel CEO Narendran made comments on VSP, there was a reaction from the employees who are protesting against the privatisation row. Visakha Ukku Parirakshana Porata Committee chairman D Adinarayana said Tata Steel should set up a new steel plant instead of trying to take over the existing one, which was set up following a protracted struggle and sacrifices of people of Andhra.