The BJP Government at the Centre and the YCP Government in Andhra Pradesh were both facing increasing political heat on the issue of the Visakha Steel privatisation. The main allegation from the opponents is that the steel plant is being sold for abnormally low rates. There is rising criticism that the disinvestment plan has put the total value of Visakha Steel at just Rs. 4,898 Cr while its overall market value would be way higher than that.
The critics are saying that the projected values of lands have also given rise to huge suspicion on the real intentions behind the privatisation move. But these lands were stated to be unimaginably undervalued in the disinvestment plan.
Now, suspecting fingers are being pointed at the State and the Central Governments. If they were really interested in a transparent disinvestment plan, all the facts about the steel plant values should have been put before the people of Andhra Pradesh by now.
More than its financial details, the Visakha Steel has now become a political sentiment for the people of the Andhras especially in the North Andhra region. The BJP and the YCP leaders are also speaking out against the privatisation plan but they are under huge pressure to clarify doubts of the AP people.