Ch Narsing Rao
THE ministry of finance sub-committee (central) announced the strategic sale of Rashtriya Ispat Nigam Limited (RINL), popularly known as Vizag Steel, on January 27, 2021. The then recognised union, CITU, united all permanent workers' unions, contract workers' unions, and officer's association on one platform, forming a struggle committee to save Vizag Steel Plant from privatisation. This committee has continued its struggle till the current date, July 31, 2023, marking the 900th day of the protest.
Our intensive struggles and the mass support from the people of Andhra Pradesh in various forms, made it possible to see that not even 1 per cent of RINL has been disinvested. Despite facing challenges like severe summer heat and rains, two hunger strike tents have persisted for 900 days – one at the Steel Plant's main gate and another in the heart of Visakhapatnam city. These relentless struggles have prevented the Expression of Interest (EoI) and bidding processes from taking place as the valuation report could not be prepared because the workers and the people staunchly resisted the entry of the valuation committee into the Vizag Steel Plant.
The major central public sector steel company, Steel Authority of India Limited, has undergone a disinvestment of up to 35 per cent. In contrast, Vizag Steel Plant has not experienced even a 1 per cent disinvestment, thanks to the unwavering resistance and efforts of the struggle committee. Throughout the course of the struggle, we have successfully organised two-day strikes once, one-day strikes twice, and held two rasta rokos.
The people of Andhra Pradesh have wholeheartedly supported our cause, and we have garnered mass support from various sections, enabling us to carry out massive movements in Vizag Steel Plant. Notably, the struggle committee organised an all-party (except BJP) public meeting in Vizag to oppose the strategic sale of RINL. Prominent national trade union leaders, including those of BMS, attended a significant gathering at Vizag Steel Plant, expressing solidarity to the movement. Additionally, a Kisan-Mazdoor Sankharavam took place at Visakhapatnam Sea beach, with major Kisan Samyuktha Morcha leaders participating in support of the anti-privatisation struggle.
In various meetings, over 20,000 workers from all public sectors in Vizag, with Vizag being a major public sector centre, along with the local population, have joined our cause. We have organised a ten-kilometre human chain near the Steel Plant, witnessing the participation of 10,000 people. Students have taken part in a five-kilometre run, and women have actively participated in hunger strikes and numerous rallies in support of our struggle. The hunger strike tents have been attended by numerous organisations from both Andhra Pradesh and Telangana daily for the past 900 days, showcasing the enduring strength of our movement.
Vizag Steel Plant, the pride of Andhra Pradesh, stands as the biggest and most prominent public sector industry in the state. It was established after a bitter struggle and the sacrifice of 32 lives, making it the only industry in India with such a history. The strong sentiment among the people towards this Steel Plant, has forced all political parties to support the struggle. But their sincerity in this matter remains questionable. Both the major ruling party YSRCP and the major opposition party TDP in Andhra Pradesh, despite having 25 MPs in Lok Sabha, have failed to raise their voice against the BJP central government regarding the demand for captive mines for Vizag Steel Plant. The BJP government could have been forced to retract from the strategic sale of RINL if these two parties had genuinely made efforts to challenge the decision.
On the other hand, the Left parties CPI(M) and CPI have demonstrated unwavering commitment to the anti-privatisation cause and have consistently supported the movement since its inception. However, other parties have played opportunistic roles in the matter. Despite this, workers from all sections, including contract workers and officers, have sincerely engaged in militant struggles, successfully stalling the strategic sale. As a result, the BJP government has been unable to execute the strategic sale procedure thus far.
In an attempt to prepare a valuation report, a committee was formed. But the struggle committee resisted their attempts, preventing the physical verification of the plant. Consequently, no valuation report could be prepared, and as a result, the Expression of Interest and bidding processes could not take place.
Currently, the BJP government has adopted alternative tactics to weaken Vizag Steel Plant. They have decreased production by 40 per cent, closing key departments like Blast Furnaces-3, and other downstream departments like Steel Melting Shop, and mills. In 2021, Vizag Steel plant recorded a net profit of Rs 948 crores. However, instead of allocating the profit for the purchase of raw materials, it was entirely utilised for loan repayments. As a result, the management claimed a lack of capital for raw materials and has subsequently reduced the production of the Steel Plant by 40 per cent over the last two years.
Remarkably, all other steel plants managed to generate profits in the year 2022-23. In contrast, Vizag Steel Plant suffered losses, amounting to Rs 3900 crores, as a result of a conspiracy by the BJP central government to weaken and sabotage Vizag Steel Plant, and privatise it.
The latest move by the central government to undermine Vizag Steel Plant involves withholding raw material shipments from Gangavaram Port. Three ships carrying coking coal, worth Rs 1000 crore, have been delayed for three days and were prevented from reaching the berths of Gangavaram Port, on the pretext that there is an outstanding debt of Rs 53 crores owed by Vizag Steel Plant.
As a consequence of the delay, a demurrage of Rs 71 lakhs has been paid to the Australian and American ships for 2.2 lakh tonnes. It is worth noting that the Gangavaram Port was originally intended for Vizag Steel Plant, but during the Vajpayee government, it was handed over to DVS consortium, which is now under the control of Adani Ports Limited with 100 per cent stake.
Both the Modi government and Adani are trying their best to weaken Vizag Steel Plant, and the people are well aware of this alleged conspiracy. On July 31, 2023, marking 900 days of the struggle, the struggle committee announced that Gangavaram Port must be returned to Vizag Steel Plant; otherwise, the struggle would be intensified further. The struggle committee has declared to observe the Quit India Day on August 9, 2023, as 'Quit Adani,' during which a 24-hour dharna would be organised with thousands of workers, to save Vizag Steel Plant.
The BJP central government is keen on selling Vizag Steel Plant on a platter to POSCO, a South Korean company, at a meagre price. During the COVID-19 period, an online MOU was signed with POSCO.
POSCO is known for using the highest number of robots in the world, in its companies including 100-tonne unmanned trucks with sensors. If POSCO takes control of Vizag Steel Plant, the profits will be channeled to South Korea. There will be a serious risk of significant job losses for workers and officers. Private companies prioritise profits and often resort to unethical methods, such as tax evasion. CITU has undertaken a big campaign highlighting the activities of the multinational POSCO and published a book titled "POSCO: Boon or Bane."
The MoU signing with POSCO exposes the false patriotism of the BJP and RSS. It is important to note that 16,000 farmers in Vizag sacrificed 20,000 acres of land for the establishment of Vizag Steel Plant, with the hope of gaining employment and fostering the development of Vizag. Regrettably, only 8,000 out of the 16,000 farmers who sacrificed their land have obtained employment, leaving the rest still struggling for opportunities.
Now POSCO intends to acquire these 20,000 acres of land, which is near the national highway and is valued at Rs 2 lakh crores. Vizag Steel Plant is the sole shore-based steel plant in India, making it a prime target for POSCO.
The struggle committee has made a firm decision to intensify its efforts until the central government withdraws its decision of strategic sale of Vizag Steel Plant. The committee demands providing captive mines to the plant and operating it at 100 per cent production capacity. Based on the 900 days of struggle experience, it is evident that only by further intensifying our efforts, we can successfully halt the strategic sale.
