Vizag Steel had been performing well since inception. In the past few years, lack of captive mines has forced it to procure at high costs outside leading to increased expenses. Capital investments in building assets also led to reduced profits. Both the situations can be reversed by allocating it captive mines or merging it with SAIL.
The move to privatize vizag steel started few years back. TDP government was in the know about this but did not oppose it then since it was a partner in NDA then. Even now, it is only blaming YSRCP trying to derive political mileage instead of asking the centre to withdraw the effort. Pawan Kalyan went to delhi and requested central ministers to withdraw the plan to privatize vizag steel. YSRCP leaders could not seize the initial moments which was utilized by TDP& its left partners to launch agitation. TDP leader is now on a fast unto death dharna in Vizag.
For BJP, privatization of vizag steel against Andhra's interests is a political self goal for the already fledgling local unit. This move has rejuvenate the TDP and a strong TDP is a anathema to BJP's growth. Coupled with the opposition to farm laws, it definitely is a issue that needs consideration before it becomes a pan andhra movement having all the contours of the same.
