Singareni team on study tour of Visakhapatnam Steel Plant; Telangana may jump into bidding

VISAKHAPATNAM: In an interesting turn of events, a high-level delegation of the Singareni Collieries Company Limited (SCCL) on Tuesday embarked on a visit to the Visakhapatnam Steel Plant (VSP) to study the bidding feasibility for its assets. Rashtriya Ispat Nigam Limited (RINL), a Navaratna company and the corporate entity of the VSP, has invited expressions of interest (EoI) from prospective bidders. The initiative is touted to be a part of a bail-out plan for capital mobilisation to the tune of Rs 5,000 for the steel factory.

According to reports, on the directions of the Telangana Government, a delegation from the Singareni Collieries began a two-day study visit to the steel plant located in the port city of Visakhapatnam in Andhra Pradesh on Tuesday. The team, comprising three directors and two general managers, is reportedly holding discussions with the VSP authorities to get a grasp of the bidding process and its feasibility.

The Telangana Government dispatching its team to the Visakhapatnam steel plant, also known as Vizag Steel, assumed political significance with the ruling YSRCP in Andhra Pradesh seeking clarity on the stand of the neighbouring state over the privatisation moves for the plant, initiated by the Centre.

As per information available, the Singareni team is also expected to hold talks with VSP CMD Atul Bhatt on Wednesday. The visit immediately lent credence to the ongoing speculation that the Telangana Government was indeed eager to take part in the bidding process for the steel plant. Incidentally, the BRS government led by K Chandrashekar Rao (KCR) has expressed its opposition to the idea of privatisation of Public Sector Units (PSUs) and other state assets.