Secret deal for 3rd partner in VSP-Posco joint firm

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The Jaganmohan Reddy Government in Andhra Pradesh is facing greater criticism than even the Modi Government at the Centre on the issue of privatisation of the Visakha Steel Plant. The CM and MP Vijay Sai Reddy and all YCP leaders have asserted their party’s stand against the privatisation.

Now, many more startling aspects are coming out with respect to the agreement reached between the VSP and the Posco company. As per this, they will form a joint venture in which there is a scope for involving a third partner as well. Doubts are arising on the secret deal behind this aspect.

Moreover, reports say that it was clearly mentioned in the agreement that the Posco company would be given a minimum of 50 percent stake in the new firm. But there was no mention about the share of the Visakha Steel Plant (VSP). At the same time, it was proposed to give 1,167 acres land to the new firm to be created with Posco. There was another provision for giving additional land if needed.

Another arbitrary provision that came to light in the VSP-Posco agreement was that the VSP would have no right to decide on the values of its lands. An outside expert would be appointed to fix this.

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