The Mesco Group has reportedly decided to shut down its 23-year-old steel plant, the Mideast Integrated Steels limited (MISl), located at Kalinganagar Industrial Complex in Jajpur district, much to the worry of 1,076 workers and employees currently working in it.

According to information, the Mesco authorities have sought permission for lay-up of the steel plant citing continued losses as reasons. It has written to Jajpur District labour Officer Kubera Behera in this regard.

Meanwhile, workers and employees gathered at the plant gate on Friday and decided to take to the streets against the decision. They demanded that the State Government doesn’t give permission for closure as their livelihoods would be completely affected. They too decided to submit memorandums to the district administration, local MlA, labour and Industries Minister and the Chief Minister to press for their demand.

The plant established in 1993 has remained shut down for the last 13 months on the pretext of expansion. Now, it has sought permission for layoff of workers on the pretext that it has been suffering losses, alleged workers.

While the plant authorities have sought shutdown permission before September 1, the DlO is expected to forward the letter to the State Government for consideration soon, sources said.

In its letter, the authorities have proposed to initiate a procedure for dismissal of workers in two phases, each of 45 days, and then declare closure of the firm.

A large number of people had been displaced as a total of 530 acres of land have been acquired for the plant. later the company took a loan from the Idco to sustain its losses. The company had been given a 2,400-acre iron ore mine at Barbil in Keonhar district.

Now the workers and employees are not ready to buy the loss reason being cited by the company for closure of the MISl. “The company has been exporting iron ore from the Barbil mines to outside the State and earning a lot of profit. It is not understood how the company is suffering losses when the plant has remained shut down for the last 13 months. The State Government should make an investigation into it,” demanded workers.

They too demanded that, before taking any decision on the proposal, the labour Commissioner should ask the both Mesco authorities and the plant workers’ association to keep their stands.