Prime Minister launches major expansion project for Vizag Steel Plant

Mega special economic region mooted for Vizag: Manmohan 

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$ 10 billion investment can be attracted 
Offers to consider revival of shipyard and BHPV 
Vizag Steel Plant to get 'mini ratna' status: Paswan 
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HAPPY MOOD: Prime Minister Manmohan Singh claps after inaugurating the Rs. 8,692-crore VSP expansion project on Saturday as Chief Minister Y.S Rajasekhara Reddy looks on. Governor Rameswar Thakur, Ram Vilas Paswan, Union Minister of Steel, T. Subbar ami Reddy, Minister of State for Mines, and M. Pallam Raju, Union Minister of State for Defence, are also seen.

VISAKHAPATNAM: Prime Minister Manmohan Singh said here on Saturday that the Government of India was holding discussions with foreign investors to explore the possibility of setting up `mega special economic regions' in the country with Visakhapatnam being one of the potential locations. 

"By developing Visakhapatnam into a mega special economic region, investments to the tune of 10 billion dollars (more than Rs. 45,000 crores) can be attracted. We will support the efforts of the State Government in developing the region here," Dr. Manmohan Singh said at a public meeting at the Municipal Corporation stadium. 

The Prime Minister, who earlier launched a massive project to expand the capacity of Visakhapatnam Steel Plant from 3.6 million to 6.3 million tonnes at a cost of Rs. 8,692 crores, said the United Progressive Alliance (UPA) Government would favourably consider revival of Hindustan Shipyard Limited (HSL) and Bharat Heavy Plates and Vessels (BHPV), both of which had been in the red for the past several years. 

Crucial for VSP 

"I am told that HSL has orders of over Rs.2,000 crores now. A proposal for its revival is under consideration and our Government will work for the revival of the shipyard, which is the largest in the east coast. I hope that with our efforts, we will once again have a world-class shipbuilding industry in Vizag," he declared at the steel plant. 

In a significant announcement, Union Minister for Steel Ram Vilas Paswan said that the Vizag Steel Plant would receive `mini ratna' status. This is considered crucial for the VSP against the backdrop of proposals by the Steel Authority of India (SAIL) to take over VSP, a move stiffly opposed by Chief Minister Y. S. Rajasekhara Reddy. 

Mr. Paswan also announced the setting up of a steel research and development centre at Hyderabad with an investment of Rs.50 crores and sanction of ex gratia of Rs. 5,000 to each employee of Rashtriya Ispat Nigam Limited, the corporate entity controlling the VSP. He said miniratna status would give autonomy to VSP in decision-making. 

At the stadium, the Prime Minister launched the Jawaharlal Nehru National Urban Renewal Mission (JNNURM) under which drinking water and drainage works would be taken up. He promised support to road development work in the city at a cost Rs. 100 crores. 

Dr. Singh said he saw a great future for the city and the region. The area up to Kakinada on one side and Srikakulam on the other could be developed into a centre of new business, and wanted the city to become the `Jewel of Coromandel coast'. 

'Bharat Nirman' 

Referring to his Government's welfare programmes, Dr. Singh said `Bharat Nirman' would provide all amenities in all villages while the National Rural Employment Guarantee Act was the single biggest commitment of his Government to eradicate poverty and providing security to the poorest of the poor. He appreciated Chief Minister Y.S. Rajasekhara Reddy's implementation of the programmes well and taking the State on the path of progress. 

It was also the occasion for the Prime Minister and for Dr. Rajasekhara Reddy to remember the last public meeting addressed by the late Rajiv Gandhi almost exactly 15 years ago at the same venue before his assassination at Sriperumbudur. 

Rajiv Gandhi left for Sriperumbudur late in the evening of May 21, 1991, after addressing a public meeting here. He was to stay back here for the night but decided to proceed to Tamil Nadu, Dr. Manmohan Singh recalled.

(Courtesy : The Hindu)