In the ongoing festive season, the fate of around 2,000 workers of Balasore Alloys hangs in balance as the production of ferro alloys company of north Odisha has come to a grinding halt.
The reason for the crisis is snapping of power to the plant due to the default of paying electricity dues by the company.The plant frequently witnesses the power snapping due to default in payment of charges and power resumption is done only after part payment. The company is while overstressed due to huge pending arrears, somehow it is surviving as it has been partly paying the dues. A report said the company has about Rs 4.5 crore dues outstanding against it towards electricity consumption in July and August.
Due to nonpayment of the amount, the power has been snapped by the Nesco this time. In the month of September, three furnaces while were operational, yet power snapping was a blow for it. The plant produces around 9,000 MT ferro alloys in a month.
As the production of the plant has been halted in the want of power, there is uncertainty over release of salary and other payments including of the workers under contractors, suppliers and vendors.
An officer besides stating the company is facing severe financial crunches, maintained that, had the plant been fully operational for the complete month, it would have earned revenue to meet the expenditures, including electricity dues, salaries and other overhead expenses.