Will CBN pass Vizag Steel Test?

Vizag Steel Test for CBN. Visakha Steel Plant: A Test for Andhra Pradesh's Coalition Government Amidst Privatization Fears.

Three months into the coalition government's tenure in Andhra Pradesh, the Visakha Steel Plant (VSP) has become a focal point of tension. The plant's future hangs in the balance as the central government, led by Narendra Modi, pushes for privatization.

Labor unions at the VSP are vehemently opposing this move and have organized large-scale protests, including a hunger strike by Riley. However, the government's privatization efforts continue, with recent actions like the shutdown of the steel smelting unit and a halt to coal supply, leading to a 70% production decline.

The unions have also raised concerns over the offer of Voluntary Retirement Schemes (VRS) to permanent employees, alleging that it amounts to forced retirement. They are demanding the state government to intervene and prevent these actions.

Adding to the pressure, AP TDP President Palla Srinivasa Rao visited the plant and expressed solidarity with the workers, promising to protect the VSP. He advocated for either coal supply resumption or handing over the management to the state government, but these demands have been met with silence by the central government.

Workers have pointed out that the previous Jagan government faced similar resistance from the Center regarding VSP. The recent meeting with the Union Steel Minister Kumaraswamy further fueled concerns as it indicated a strong push towards privatization.

The TDP's alliance with the BJP has also added to the workers' distrust, despite assurances from the party. The Visakha Steel Plant's fate now rests on the coalition government's ability to influence the central government and protect the plant, making it a crucial test for the state's leadership.

The situation highlights the complexities of managing a public sector unit in a federal system, particularly when there are conflicting agendas between state and central governments.