DMK, AIADMK oppose Salem plant privatisation

CHENNAI: The Steel Authority of India 's global tenders, as part of the proposed strategic disinvestment of Salem Steel Plant on Friday set off strong protests from the ruling AIADMK and DMK in the state assembly. In Salem, about 1,800 workers held a token strike in front of the plant from morning, affecting the day's production.

In a rare gesture, chief minister Edappadi K Palaniswami agreed to the suggestion from Leader of Opposition M K Stalin that MPs from the state should call on Prime Minister Narendara Modi to put pressure on the Centre against the privatisation of the plant, the dream project of DMK founder C N Annadurai. "As you said, our MPs and your MPs and that of Congress, as a first step, shall meet Prime Minister and minister concerned and submit a memorandum seeking withdrawal of the disinvestment plan. It is a vital project," the chief minister said, while remaining non-committal about leading the MPs team, as sought by Stalin. Former chief minister M Karunanidhi laid foundation stone for the plant in the presence of then PM Indira Gandhi in 1970.

In 2017, the Centre informed Parliament about its' in-principle approval for disinvestment of the plant, citing losses for five years, despite spending around 2,200 crore under modernisation and expansion. Palaniswami recalled the efforts taken by the state government to resist the privatisation move two years ago. "They (Centre) made attempts in many ways. They were all thwarted," the CM said, adding that MPs could highlight to the PM and the minister concerned about the wrong perception of the public on the disinvestment of such PSUs. He assured the government's as well as AIADMK's support to raise the issue in both Houses of the Parliament.

On Thursday, SAIL had floated global tender for strategic disinvestment in three plants, Alloy Steels Plant, Visvesvaraya Iron and Steel Plant and Salem Steel Plant. The company has appointed SBI Capital Markets Limited as its transaction advisor for disinvestment process, for which expression of interest from bidders are to be submitted by August 1. Salem Steel Plant Employees Union, affiliated to CITU, general secretary K P Suresh said that members of INTUC, CITU, LPF, PTS and AIADMK's ATP also took part in the protest.