Amethi, Feb. 27: Rahul Gandhi today revived his father’s jinxed dream of an industrial hub in a family pocket borough by getting Steel Authority of India Ltd to take over a closed private plant.
Malvika Steel, which shut down in 1998, was the face of the collapse of the Jagdishpur industrial area, a brainchild of Rajiv Gandhi in his constituency Amethi, now represented by Rahul.
Home to 515 units in 1989-90, Jagdishpur had turned a graveyard by the year 2000 with industry after industry moving out or closing, leaving a handful of government undertakings such as Bhel to hold fort.
“When I came here five years ago and heard about the woes of Malvika Steel, I had determined… to revive the steel plant,” said Rahul at the takeover, attended by steel minister Ram Vilas Paswan and his deputy Jitin Prasada.
“During subsequent visits, I was told the industries had shut down, the school does not have teachers and students don’t get education. Now I believe the plant would be rebuilt by SAIL and this will lead to revival of some other ancillary industries.”
The 0.85-million-tonne steel plant had opened with 743 employees but had about 200 when it closed. Fifteen workers’ families still reside in Jagdishpur. In 2007, a woman committed suicide, unable to bear starvation, residents say.
Malvika was started by the Usha Group in 1988, a year after Rajiv launched the industrial hub. It fell sick, was referred to the Board for Industrial and Financial Reconstruction and was auctioned at Rs 207 crore to Jaypee Associates, which outbid SAIL.
Jaypee’s move to downsize some employees triggered unrest and the matter went to the appellate tribunal, at which point Rahul persuaded the steel ministry to make a take-over bid. SAIL, which has bought Malvika for Rs 210 crore, is expected to invest another Rs 450 crore.
“It’s our mission to revive sick industries. I hope this will generate employment,” Paswan said.
Rahul said he was determined to see an economic resurgence in Amethi. “My father left me 17 years ago and can no more show me the right path. But the people of Amethi and Rae Bareli (his mother Sonia’s constituency) still can.”
