VSP lends land to Andhra Pradesh government

VSP lends land to Andhra Pradesh government

Indian steel producer Visakhapatnam Steel Plant (VSP) has recently lent land to Andhra Pradesh government for the establishment of Gangavaram Port. The port will be developed by private sector company Gangavaram Port Ltd. The land was acquired by VSP from the state government. However VSP and the government had different opinions about the usage of port in the last few years. VSP wanted to remain as a shore-based steel producer, so that it could export its products to Southeast Asian markets and import raw material. The government, on the other hand, insisted on establishing a port at Gangavaram. However, Steel Ministry demanded VSP to decrease its exports. Accordingly, VSP, taking the Ministry's advice into consideration, agreed to turn over the land. The deal regarding the turn-over of the land was signed between VSP and the state government yesterday.