Government looking to give life to major PSUs, including Salem Steel Plant, says Union Minister

Union Minister Kumaraswamy plans to revive major PSUs in southern India, including Salem Steel Plant, for expansion and growth.

The Union Minister for Heavy Industries and Steel, H.D. Kumaraswamy, on Monday said the government was looking to give life to three major public sector undertakings (PSU) in southern India by reviving them.

The Minister visited Salem Steel Plant and discussed with officials regarding the plant’s growth. The Salem West MLA R. Arul submitted a petition to the Union Minister demanding to redistribute the unused land of Salem Steel Plant, which was acquired from farmers in the 1970s. 

Speaking to reporters, Mr Kumaraswamy said: “We visited the plants here and also inspected the process and had a lengthy review meeting. Senior officials explained the issues in the past 15 years. We have decided to get reports from some senior consultants. Earlier in 2000, the government wanted disinvestment but somehow, with limitations, the plant is running and seeing ups and downs. But it was not closed. Now we are thinking about expanding it and how to work it out, how much money we require and after investment how we will get back the money. For that, a roadmap was taken from officials and we are working out. Within one or two months, we will come back.”

Regarding the PSUs expansion, Mr. Kumaraswamy said in the southern part of India, there are three major PSUs in Visakhapatnam, Salem, and Karnataka. “We are thinking about how to give life to these three PSUs by reviving them, and we are working out.” A top-level meeting has been arranged in Delhi on October 8. Andhra Pradesh Chief Minister N. Chandrababu Naidu and Finance Minister Nirmala Sitharaman have been invited for the meeting. With the guidance of Prime Minister Narendra Modi, we will take a decision, he said. 

Responding to the demand for filling vacancies in Salem Steel Plant, the Minister said “only after the expansion of the steel plant, we would be able to think of filling vacancies. There is demand to manufacture other kinds of steel products. All those things were discussed and after expansion we will look into the demands. Regarding the lands, the Steel Plant administration maintains them well. We want to expand the steel plant, and we need land for that. If there is no expansion, the demand of MLA (Mr. Arul) will be looked into.”