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Political Pressure Mounts: CPI(M) Demands Immediate Halt to VSP Privatization Plans

September 19, 2025
in National, Politics
Reading Time: 2 min

CPI(M) State Secretary V. Srinivasa Rao made a strong public statement on Friday, September 19, 2025, calling on both the Central and State governments to immediately halt all plans to privatize the Visakhapatnam Steel Plant (VSP). He also demanded the swift cancellation of the Expression of Interest (EOI) document, which outlined intentions to transfer various VSP departments to private entities.

During a media address, accompanied by party central committee member K. Lokanadham and Visakhapatnam district secretary M. Jaggunaidu, Mr. Rao further pressed for the allocation of designated iron ore to the plant and the re-employment of 5,000 contract workers who were recently laid off. He criticized both the former YSR Congress Party government and the current administration for their inability to prevent the privatization process. “The current government is actively suppressing dissent by denying employees permission to protest,” Mr. Rao asserted.

Mr. Rao pointed out that previously, all political parties except the BJP had stood against the plant’s privatization move. However, he lamented that the TDP and JSP have now withdrawn their support, leaving the BJP as the sole proponent of the action.

Shifting focus to economic policy, the CPI(M) leader reiterated their long-standing opposition to the four-tiered Goods and Services Tax (GST) slab system since its inception. He challenged Chief Minister Nara Chandrababu Naidu, reminding him that his government had previously passed a resolution supporting GST reforms. Mr. Rao demanded that the Chief Minister clarify how the state intends to compensate for the projected ₹8,000 crore revenue shortfall resulting from the recent GST slab reductions.

Lastly, Mr. Rao criticized the State government for allegedly allocating land to corporations and multinational companies in Visakhapatnam at undervalued rates. He noted that despite numerous companies acquiring land and announcing significant investments and job creation, very few have actually commenced operations. “We demand a white paper detailing all land allocations to these companies, outlining how many have begun operations, and precisely how many jobs have been created,” he concluded.

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