In a new twist to the debate on the proposed disinvestment of the Vizag Steel Plant, the Telangana government is currently considering participating in the Express of Interest (EoI) for Rashtriya Ispat Nigam Limited, the corporate entity of the steel plant in the port city.

The decision of Chief Minister K Chandrasekhar Rao has thrown political parties of both Andhra Pradesh and Telangana in a tizzy, particularly because both the YSRCP and the local BJP are uncomfortable with the proposition.

Rao has been vocal against privatisation of the Vizag steel plant, particularly while setting up the Andhra Pradesh unit of the BRS and recently Telangana industry minister KT Rama Rao wrote a letter to the Centre opposing the 100 per cent disinvestment move of the Centre.

Reports that Telangana officials are studying the modalities of the EoI to participate either through the entity of Singareni Collieries Company Limited (SCCL) or Telangana State Mineral Development Corporation (TSMDC) has been greeted with joy by many in Vizag. Employees of the steel plant have been on protest ever since the Centre revealed its decision to disinvest it.

“Thank you very much KCR garu for the decision to participate in the EOI process of Vizag Steel Plant. Your step will bring real hope for revival. Hope the AP chief minister and SAIL also will show similar interest in participation in EOI,” said VV Lakshmi Narayana, former CBI joint director who had contested for the Vizag Lok Sabha seat in 2019 on Jana Sena ticket.

Narayana cited the case of Kerala where the state took over a Central PSU, the Hindustan Newsprint Limited (HNL) with a Rs146 crore bid and resumed operations as Kerala Paper Products Limited (KPPL).

The Telangana chief minister’s decision has put pressure on the Andhra Pradesh government led by YS Jagan Mohan Reddy, who has opposed the privatisation bid but did not do anything further. Today, AP Industry Minister Gudivada Amarnath said, “Jagan Anna’s government is against the idea of privatizing Vizag steel plant. This is our stand, we need not answer to who is going to buy it.”

Meanwhile in Telangana, BJP state chief Bandi Sanjay asked why the funds of the state will be invested in a steel plant in AP. Some even wondered why Telangana should not set up its own steel plant at Bayyaram which the Centre had promised in the bifurcation act but then stepped back.

BRS spokesperson Manne Krishank said, “When Gujarat Mineral Development Corporation can bid and get mines in Odisha why can’t Telangana bid for Vizag steel plant for which even Telangana people lost lives fighting for it. Vizag steel plant, Bayyaram (steel plant) are not encouraged only for the benefit of Modi, Adani and Posco,” referring to speculation that Centre was disinvesting RINL to sell to POSCO and the Adani group.

However, several people also questioned whether KCR was only trying to woo the people of Vizag through this move in order to reap political benefits in Andhra Pradesh. Rao has planned a mega rally in Vizag to launch the BRS in AP and such a move would definitely win him plenty of plaudits in the port city.