Hind Mazdoor Sabha (HMS) national vice-president and State unit president, former MlA Rajendra Prasad Singh has written a letter to Chief Minister Naveen Patnaik, urging him to negotiate with the Steel Authority of India limited (SAIl) to take over IDCOl Kalinga Iron Works limited at Matkambada in Keonjhar district.
There are 1,400 persons employed in the plant who have been in utter hardship after the plant was shut in February 12 last.Singh told that under the present facility, the plant is incurring huge production loss and therefore has been shut down. But its modernisation can help it become viable and save thousands of its employees from losing livelihood.Singh said M/s MECON, Ranchi, had in 2009 submitted a perspective plan report for modernisation of the plant to 0.5 MT at a cost of Rs2,498 crore.
In view of the huge investment, the Board of Directors in its 325th meeting held in June, 2009 referred the proposal to the State Government.The plant was taken over on April 1, 1963 by the Kalinga Industries limited. It was established by former Chief Minister Biju Patnaik with one furnace.Subsequently three more furnaces were installed. At present non-availability of iron ore on required specification has become a major problem for the plant.
Management is making efforts to get 10-30 MM BF grade iron ore from different sources, but due to imposition of restriction on mining operation, the plant failed to get the raw material. The plant’s own mine Roida “C” in Barbil will be exhausted in a year, Singh pointed out.Singh said that under the circumstances, the State Government should take steps for its sustenance through expertise in management and huge capital for its modernization which can only be provided by the SAIl.