Balasore Alloys faces double whammy

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Fates of around 5,000  Balasore Alloys workers and their families hang in balance as  the power supply to the company has been snapped owing to nonpayment of energy bill, which is a  whopping  amount of about Rs 262 crore now.

This a big blow to Baleswar district ahead of festival season  for the ferroalloys company as well as the local market. It is also a jolt to the district which couldn’t witness establishment of  any big industries post eighties  although the Rs ,6000 crore  Subarnarekha port and   Rs 80,000 crore , a mega project of  HPL (Haldia Petrochemicals Limited)   are in offing.

According to company profile, Balasore Alloy, formerly Ispat Alloys Li      Rs mited, is a part of the renowned ispat group of companies, a major business house in the country, promoted by the Mittals. At present, it has two plants with total capacity of 160,000 MTPA.

The company has 5 furnaces and requires 132 KVA power supply to run the plant. And each month on an average about Rs  20-22  crore  bill is generated  towards energy consumption. The company  is experiencing  crisis for last few years due to its bad financial condition.

A Nesco (Northern Electricity Supply Company) official stated that the ferroalloys company was  asked to clear the dues repeatedly yet  the latter adopted a dillydally approach. Finally, the power supply is severed to the plant

The plant’s production  is shut  as raw material  was not reaching to the plant due to mining problem and now the  power supply is severed. While on the one hand  the plant production is stalled, on the other, the recognised union of the plant has threatened for agitation.

In a meeting  with workers, the Balasore Alloys Employees’  Union  president Sudhir Mangaraj alleged that the authorities are shunting out  the workers having 20-25 years experience and  instead recruiting new people. Further he alleged that although there should  be new agreement between  the workers union and company, yet the same was not being followed.

Due to autocratic attitude of the company authorities, the union would be forced to undertake agitation, Mangaraj threatened.

Daily Pioneer
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