The private sector metal-based industries in Sundargarh district facing closure due to inaction by the Central and State Governments towards rising cost and unavailability of raw materials, mounting loan burden and in certain cases, due to the lapses in management. The latest in the line is Kuanrmunda-based Adhunik Metaliks ltd (AMl), a mini steel plant of 0.5 million tonnes per annum (MTPA) capacity established at a cost of over Rs3,000 crore. The AMl, sustaining prolonged loss for high cost of iron ore and loan burden, abruptly closed on February 12 last leading to labour unrest. About 5,000 regular and contract workers were rendered jobless. Besides, many who were doing business with AMl directly or indirectly became sufferer.
Ironically, it was inaugurated by Chief Minister Naveen Patnaik in 2002 at Chandriharipur in Kuarmunda and the unit was closed at the same time when Patnaik was addressing a youth convention of ruling BJD in Rourkela laying much importance on youths and development of the State. Though Minister of State for Steel and Mines Prafulla Mallik had assured the workers of taking necessary steps for reopening the AMl plant and paying their outstanding salaries and statutory dues on February 15 last, nothing has changed in the situation. Similarly one week after the lock out on February 19 last, the State declared the continuous lockout at Adhunik Mettaliks limited (AMl) as illegal and Sundargarh Collector BS Poonia had assured to a delegation of the workers’ union on February 28 last that the plant would reopen soon. But still no change has been marked in the situation.
Ml employee B lenka said, “Since last two months we are getting assurance from different levels but to no avail. Similarly since December we have been getting assurance of payment of back wages but so far it was not given.” He cited the example of ORIND, lathikata, which declared a lock-out in February 2004 after it suffered losses. The lock-out was later declared illegal and the factory was reopened in March 2004 and ran for a few months only. He questioned what happened to it and its workers. The company would have to pay Rs23.50 crore to the employees towards their monthly salary, provident fund dues, retirement benefits and wages towards the wages of contract workers.
State Chief Secretary in November 2010 had directed the company to pay Rs10,000 to every employee soon and to clear their back dues within three months. The company did not pay any heed to it. Rather the company is locked out and the workers and their family members are left in the lurch. Even the employees have been deprived of their genuine rights like EPF, gratuity etc, while the factory owner is roaming scot free. On the other hand, justifying the lockout, AMl authorities claim the unit has been facing tremendous financial crisis amid disruption of production due to scarcity of iron ore. After paying bank loan instalment along with statutory dues, the company is left with no fund to pay salaries. The latest source said in the tripartite discussion on March 8 last at Sundargarh labour office, the AMl management has agreed to reopen the plant by May end and the workers will be given their arrears soon.
Besides AMl, many other metal-based industries in the district are on the verge of closure. Many have already declared lockout putting thousands of workers jobless. Source said last year, UCO Bank’s mid-corporate branch (MCB), Rourkela, had declared five corporate loan accounts to the tune of Rs 100 crore as bad. At least three corporate accounts with loan dues of around Rs80 crore were assigned to different parties for take-over. Similarly Rourkela SME branch of State Bank of India (SBI) said 8 to 10 iron and steel manufacturing units have been closed. Several closed plants were auctioned and sold as scrap after dismantling. In coming days, many more have to be auctioned, said bank sources.
local industrialist BS Agarwal said a process for ‘de-industrialisation’ is underway in the district as closed plants are getting dismantled instead of changing its ownership. It is the duty of the Central and Odisha Governments to ensure availability of adequate raw material and electricity at reasonable price. Even the support what they were getting from RSP earlier have not been getting now. So the local people’s representatives should look into it. He further said the Centre should ensure freezing of interest parts and allow long duration for repayment of principal loan amount.