Rajya Sabha MP, Vijayasai Reddy may have pushed YSR Congress into trouble. A question he asked the Government in Parliament has put Jagan Government in the dock regarding the privatization of Vishaka Steel Plant.
Union Minister Pradhan told the Rajya Sabha that a South Korean company POSCO is going to step up a plant in the lands of the Visakhapatnam steel plant. He said the contract for the Posco plant was signed with the Visakhapatnam Steel Plant in October 2019.
Union Minister Dharmendra Pradhan said the POSCO team had already visited the Visakhapatnam steel plant three times. POSCO has signed an agreement with Rashtriya Ispat Nigam Limited (RINL) to hand over the land. POSCO has already announced the formation of a Joint Working Group to set up the plant. POSCO will have a stake of at least 50 percent in the new plant and its shareholding is likely to increase beyond that.
However, the Union Minister said that RINL had not yet decided on its stake. According to Union Minister Dharmendra Pradhan, POSCO representatives met AP Chief Minister YS Jaganmohan Reddy after an agreement with the central government. On October 29, 2020, POSCO representatives met Chief Minister Jagan. That means Jagan Government is aware of the deal well in advance. That pushes the Ruling party into trouble.
