Following reports that the Union Steel Ministry has decided to contract out over 32 segments of Visakhapatnam Steel Plant’s operations to private companies, former Secretary to the Government of India E.A.S. Sarma on Monday (August 18) shot off a letter to Union Minister for Steel H.D. Kumaraswamy, opposing the same and saying the move would destroy the VSP as a public-sector entity.Mr. Sarma said both the Centre and the NDA government at the State were making a series of calculated moves to destroy the Central Public Sector Enterprise (CPSE) character of the VSP. Refusing to allot a captive iron ore mine to the VSP while allotting multiple mineral blocks to private companies is one of such steps, he said, adding that the VSP was also not provided timely supply of inputs like coking coal.Mr. Sarma said the TDP-JSP combine was pampering ArcelorMittal with multiple concessions, such as land at a cheap rate, a captive port and the usual package of tax and other subventions, which total far more than the measly financial package of ₹11,440 crore by the Centre to the VSP.Mr. Sarma said the piecemeal privatisation of the RINL’s operations, weakening its management and destroying its public sector character would result in the transfer of ownership of highly valuable land and machinery to private hands at an unconscionably low price, as no private promoter could ever afford to compensate the government for the true value of those assets.Privatisation of the VSP, either as a complete entity or in a piecemeal manner, would reduce employment opportunities for local youth in north Andhra, would permanently close the doors for reservations for SCs/STs/OBCs, which poses a serious socio-economic concern, he said.Mr. Sarma appealed to the Union Minister to stand by the employees of the VSP and the people of north Andhra by putting a stop to the moves.Published - August 18, 2025 07:28 pm IST