Vishaka Steel Plant registered 939 Crores in Operational Profit last year and a turnover of 28,215 Crores. Back then, there was criticism that Government is selling off a profit-making entity without making an attempt to revive it.
There are doubts that the government is intentionally pushing the steel plant into losses.
The steel plant has 20,000 Crore in debts. But there is no attempt to restructure the debt or to give equity or preferential equity.
This facility is extended to some private companies but not to a government company which has 30,000 officials, employees, and contract employees.
In the current financial year, already a net loss of Rs. 1,261 crores is reported. The plant is operating only at 50% capacity.
Although the company is in a serious financial crisis, the post of a director who oversees financial affairs and operations has not been filled for four months.
Although the officer who previously served in that post is available, his tenure is not being extended.
As a result, there is concern that the company’s financial condition may become more untenable.
The Steel Plant workers and even experts suspect that this is a plan to show serious losses on the steel plant’s name and sell it at a dirt-cheap price.
