The Union Government should restrain the Vedanta group from selling the valuable lands (more than 350 acres) of Hindusthan Zinc Ltd (HZL) within the Greater Visakhapatnam Municipal Corporation (GVMC) limits, as it is against the public interest, according to former bureaucrat and convener of Forum for Better Visakha, E.A.S Sarma.
In a letter to the Union Cabinet Secretary, P K Sinha, the copies of which were released to the media, he said HZL was set up as a public sector undertaking by the Union Government more than four decades ago and the Vedanta group acquired a majority stake through the disinvestment route.
At present, the group holds 64.92 per cent stake, the Government 29.59 per cent and the rest is held by institutions. Zinc smelter was finally shut down in 2012 after people around that area complained of pollution and the employees were given VRS.
Sarma said in the letter that after ruining the HZL unit here, "the Vedanta group has signed a MoU with the AP Government here recently to set up another zinc smelter in another port town in the State, either Kakinada or Krishnapatnam. The same story will be repeated there and the group is trying to grab valuable lands there also."
He said it was a clear case of failed disinvestment and the AP Government should not part with valuable lands for the group to set up another zinc smelter and also a fertiliser plant. The group has sought 1,200 acres for the purpose, promising an investment of Rs 6,000 crore in two phases. The MoU was signed here recently at the CII partnership summit.