TDP-BJP-Jana Sena Alliance Faces Backlash Over Alleged Support for Vizag Steel Plant Privatization
August 31, 2025 – The Telugu Desam Party (TDP), Bharatiya Janata Party (BJP), and Jana Sena Party (JSP) coalition, which secured a landslide victory in Andhra Pradesh’s 2024 elections, is embroiled in a heated controversy over the future of the Visakhapatnam Steel Plant (VSP), officially known as Rashtriya Ispat Nigam Limited (RINL). Despite public assurances from the alliance that it opposes privatization, opposition parties, including the Yuvajana Sramika Rythu Congress Party (YSRCP) and Andhra Pradesh Congress Committee (APCC), along with plant workers and trade unions, accuse the coalition of covertly supporting the central government’s agenda to privatize the state-owned enterprise. This issue has sparked protests, political slugfests, and growing distrust among Visakhapatnam’s residents, for whom the plant is both an economic lifeline and a symbol of regional pride.
Historical Context of the Vizag Steel Plant
The Visakhapatnam Steel Plant, established in 1971 and operational since 1982, is India’s first shore-based integrated steel plant with a capacity of 7.3 million tonnes per annum. Built on 22,000 acres of land acquired from 62 villages, the plant’s creation followed a mass agitation in the 1960s that claimed 32 lives, cementing its emotional and economic significance for Andhra Pradesh. Employing over 12,000 permanent workers and supporting thousands more through ancillary industries, VSP is a cornerstone of the Gajuwaka and Anakapalle constituencies in Visakhapatnam.
However, RINL has faced financial challenges, accumulating losses exceeding ₹20,000 crore by 2024 due to the lack of captive iron ore mines, reliance on costly imported coking coal, and operational inefficiencies. In 2021, the BJP-led National Democratic Alliance (NDA) government at the center announced plans for 100% strategic disinvestment of RINL, citing financial unviability. This decision triggered a prolonged agitation led by the Visakha Ukku Parirakshana Porata Committee (VUPPC), a coalition of trade unions including AITUC, CITU, and INTUC, which has protested for over 1,300 days.
The Alliance’s Public Stance
The TDP-BJP-JSP alliance has consistently voiced opposition to privatization, positioning itself as a protector of VSP. Chief Minister N. Chandrababu Naidu, whose TDP leads the coalition, has emphasized reviving the plant through mergers or financial aid rather than privatization. On September 25, 2024, TDP’s national general secretary and state IT minister, Nara Lokesh, reiterated that the party would not allow privatization, citing TDP’s historical resistance in 1998. Gajuwaka MLA Palla Srinivasa Rao, a prominent TDP leader, vowed on August 30, 2025, to fight privatization in 2025 as the party did decades ago, emphasizing the plant’s role as an “economic lifeline and emotional anchor” for Visakhapatnam.
Jana Sena chief and Deputy Chief Minister Pawan Kalyan has been particularly vocal. In 2021, as an opposition leader, Kalyan led a rally against privatization and threatened to end JSP’s alliance with BJP over the issue. In November 2024, he told the Andhra Pradesh Legislative Council that he raised the issue with Union Home Minister Amit Shah, securing assurances against privatization. Kalyan also referenced Union Minister of Steel H.D. Kumaraswamy’s July 2024 statement ruling out privatization, though Kumaraswamy noted that a final decision rests with Prime Minister Narendra Modi.
The state BJP unit, led by figures like Somu Veerraju and D. Purandeswari, has also expressed opposition, aligning with public sentiment. In 2021, Veerraju met Union Petroleum Minister Dharmendra Pradhan to urge reconsideration, citing the plant’s cultural significance. However, the central BJP leadership has remained largely silent, fueling doubts about the alliance’s true intentions.
Opposition’s Allegations
The YSRCP, led by former Chief Minister Y.S. Jagan Mohan Reddy, has accused the alliance of hypocrisy. On August 23, 2025, YSRCP’s Leader of Opposition, Botcha Satyanarayana, demanded clarity on the coalition’s stance, alleging that Naidu’s 16 visits to New Delhi in 15 months failed to address VSP’s privatization with Modi. Satyanarayana claimed the YSRCP government (2019–2024) prevented privatization through sustained advocacy, while accusing the current coalition of issuing 44 Expressions of Interest (EOIs) on August 16, 2025, for outsourcing key departments, a move seen as a step toward privatization. The YSRCP has announced plans for a massive movement to save VSP, inviting other parties to join.
APCC president Y.S. Sharmila has been equally critical, alleging a “silent tactic” by the BJP-led NDA to destabilize RINL by withholding captive mines and raw materials, reducing the workforce from 35,000 to 20,000, and undermining a ₹11,400-crore revival package by reclaiming ₹8,000 crore in taxes and loan arrears. On August 29, 2025, Sharmila accused the TDP and JSP of betraying election promises, claiming they are complicit in a plan to hand VSP to corporate giants like Adani. She launched an indefinite strike in May 2025 to support terminated contract workers, highlighting the dismissal of 2,000 employees as evidence of deliberate weakening.
Workers and Unions’ Distrust
VUPPC and trade unions remain unconvinced by the alliance’s assurances. On September 17, 2024, the workers’ strike marked its 1,314th day, driven by fears of closure due to a coking coal shortage and financial distress. KM Srinivas, Visakhapatnam district president of CITU, dismissed state BJP leaders’ claims, stating that only a public commitment from Modi or Shah would restore trust. The unions argue that the outsourcing of critical departments and the failure to allocate captive mines are deliberate moves to push RINL toward insolvency, making privatization easier.
Workers also point to the coalition’s silence during Modi’s May 2024 visit to Anakapalli, where he avoided addressing VSP despite its significance in Gajuwaka, a key constituency with 3,27,438 voters. The VUPPC, which initially planned to boycott the 2024 elections, shifted to supporting the INDIA bloc, citing distrust in both YSRCP and the TDP-JSP-BJP alliance.
Economic and Political Implications
The VSP controversy is a litmus test for the TDP-BJP-JSP alliance, particularly in North Andhra, where the plant sustains thousands of families. Privatization fears could impact the coalition’s prospects in the Gajuwaka and Visakhapatnam Lok Sabha constituencies. The YSRCP has capitalized on this, framing itself as the plant’s true defender, though critics note its own failure to secure captive mines during its 2019–2024 tenure.
Economically, VSP’s closure or privatization could devastate Visakhapatnam’s industrial ecosystem, including the Andhra Pradesh Industrial Infrastructure Corporation’s (APIIC) Auto Nagar, which supports thousands of micro, small, and medium enterprises. Former bureaucrat EAS Sarma described the center’s revival packages as “calculated moves” toward privatization, citing management actions against protesting workers.
Looking Ahead
As the debate intensifies, the TDP-BJP-JSP alliance faces pressure to translate its rhetoric into action. Proposals like merging VSP with the Steel Authority of India Limited (SAIL) or securing captive mines have been floated, but no concrete steps have emerged. The opposition’s call for a state assembly resolution against privatization remains unanswered, with TDP leaders arguing it’s unnecessary given their stated stance.
For Visakhapatnam’s residents and VSP workers, the plant’s fate is deeply personal. As protests continue and political accusations fly, the coalition must navigate a delicate balance between aligning with the central BJP government and addressing local sentiments. With the 2026 elections looming, the VSP issue could define the alliance’s legacy in Andhra Pradesh.
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