Union Minister of State for Steel B Srinivasa Varma on Thursday said that the prospect of merging Visakhapatnam Steel Plant with the Steel Authority of India Ltd. will not arise.
The SAIL had rejected the idea of merging an indebted entity into it, he said in Andhra Pradesh.
"The merger of VSP into SAIL will not happen. I am telling this as the steel minister. SAIL officials raised the objection that they will not merge a company plagued with debts," said Raju, according to a BJP release.
The minister noted that SAIL officials asked for the handover of VSP or Rashtriya Ispat Nigam Ltd.'s management after it frees itself from debts.
Before January end, Raju said production would start at VSP with the supply of raw material to bring it into full production by August end to make it profitable.
According to the BJP leader, the Centre sanctioned the recent financial support of Rs 11,440 crore to avert the privatisation of the steel plant and "honour the sentiments of Andhra people".
Moreover, he highlighted that Union Steel Minister HD Kumaraswamy had announced that another 'massive' package will be given to VSP in the future.
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