The Centre has given the green signal for the sale of valuable land parcels belonging to the Visakhapatnam Steel Plant, with 459 plots spread across approximately 93,572 square yards set to be offered through an open e-auction.
The move comes amid a series of decisions concerning the steel plant and has triggered fresh apprehension among employees and workers over the future of the public sector undertaking.
The Vizag Steel Plant management has identified land parcels in HB Colony and Auto Nagar in Visakhapatnam, besides properties in locations outside the city, including Hyderabad and Chennai, for possible sale.
Earlier, the proposed sale had faced legal opposition. Praja Shanti Party president K A Paul had filed a public interest litigation challenging the move, following which a stay was imposed and the auction process was halted for some time.
Subsequently, the Centre’s National Land Monetisation Corporation (NLMC), established in 2022 to generate revenue from surplus land held by public sector enterprises, was entrusted with the responsibility of monetising the steel plant’s land assets.
As part of the latest exercise, 456 plots in HB Colony, spread over approximately 18.17 acres, and three plots in Blocks 2 and 3 of Auto Nagar, covering about 0.56 acres, are proposed to be auctioned.
The total area covered by the identified properties is around 19.29 acres. According to an announcement on its X account, the NLMC has set a target of generating approximately Rs 900 crore through the auction.
However, details such as the individual plot sizes and their reserve prices have not been made available, according to the information provided.
The proposed sale assumes significance because land values in Visakhapatnam have risen considerably. HB Colony is located along a major road and is also close to National Highway-16. The area is also considered relatively free from groundwater-related concerns.
Steel Plant officials are reportedly of the view that the land could fetch considerably more than the NLMC’s target. Based on an estimated market value of around Rs 2 lakh per square yard, the 18-acre HB Colony land alone could potentially generate around Rs 1,700 crore.
The auction process is scheduled to be conducted in two phases, on October 12 and October 16, according to officials.
The latest decision has renewed focus on the Centre’s strategy for monetising the steel plant’s surplus land assets, while workers continue to closely watch developments amid concerns over the plant’s future and the government’s subsequent decisions.
