The Kalinga Industries ltd, an iron plant established by the efforts of Biju Patnaik at Barbil in 1948, has stopped operations since February 2015 and Rs 88 lakh is being spent every month towards payment of salary to 222 employees.
Industries Minister Niranjan Pujari informed this in the State Assembly in response to a question of BJP MlA Dilip Ray on Friday. The name of the plant had been changed to the Kalinga Iron Works after the Idcol took over it in 1963, the Minister said.
The Minister too informed that Rs 1.20 lakh is being spent every month towards welfare, sanitation and transport though a contractor.
When Ray wanted to know if the State Government has any plan to re-operate and upgrade the plant, Pujari stated that the firm would re-operate only after 51 per cent of share of the Idcol is bought by a Central PSU for which a process has already started.
After the process is over, the Kaling Iron Works would avail an iron ore mines and resume production.