Telangana: Singareni scours for linkage

Hyderabad: What did the SSCL team focus on during its two-day visit to Visakhapatnam Steel Plant?

According to VSP sources, the team of three directors and two general managers from the SCCL interacted with the VSP directors of the commercial, finance and operations wings on the first day, followed by a visit to the plant on the second day. They focussed more on the coal linkage from its Talcher Coalfield located in Angul district of Odisha. It is learnt that during its interaction with the VSP officials, the SSCL team has not shown any sign of making huge investments. Coal linkage, the sources said, can help VSP to fire 500 MW power generation.

Further information on providing working capital would be known after the SCCL board takes a decision after discussing with the shareholders which apparently is the state government.

The internal information is that the SCCL team had explored only the coal linkage. It comes to an investment of about Rs 200 crore. "It was only the media that created all the hype around the SCCL visit. It is going to invest big in VSP," YSR Steel Employees Congress Union leader Y Mastanappa told Hans India.

He said the steel plant requires coal, iron ore and working capital. In return, the VSP will give semi steel blooms to whoever provides one or all three components. In turn, the same could be converted into fine steel depending on the requirements of the end users.

He said the fine steel would fetch about Rs 6,000 per tonne over the semi steel cost. "If the VSP is asked to convert and give fine steel, the plant has the facility for the same. It will collect conversion charges and deliver fine steel," he added.

This is the whole issue for which the VSP had sought inviting Expression of Interest (EOI) from prospective bidders to submit their expression of interest.

The finer points of what transpired between the two sides have been given to the unions. "We don't know what Telangana Chief Minister K Chandrasekhara Rao had in his mind but all unions of the VSP have agreed that they will agree to SSCL entry, provided it comes as a 100 per cent government company."

The source further said the VSP unions did not allow POSCO entry, as it could have led to taking over of the VSP.