In a statement, PMK founder leader S Ramadoss said the plant had earned profit continously for 13 years and was facing loss only in the past two years.
He said similar proposal had been made in the past but was dropped after 'strong objections' from political parties, including PMK, inside and outside Parliament.
Instead of privatising, the government should take up modernisation of the plant which was making "international quality stainless steel" and exporting to various countries including US and Australia, he said.