India : Trade Unions up in arms against proposal
Trade unions are up in arms against the proposed move of the Centre to privatise the Salem Steel Plant.
The CITU-affiliated Steel Plant Employees Union president R. Panneer Selvam said
the plant is known for its world-class stainless steel products, which are well accepted in the national and international markets.
The plant has been exporting the products to 37 countries.
According to Mr. Panneer Selvam, the plant will definitely come out of the red if certain supportive measures such as the establishment of a captive power plant; strengthening of the marketing team; enhancement of orders from Railways; setting up a wagon manufacturing unit at
Salem; absorption of the interest burden; and support to liquidate the inventory are initiated by SAIL.
The Salem district unit of the CITU said the plant has to bear a financial burden of Rs. 240 crore every year due to interest on the funds spent for expansion and the Centre could help Salem Steel Plant by writing off the interest.
“The move to sell its properties worth Rs 15,000 crore will hit the industrial progress of the State,” the CITU said.
The plant had suffered serious power crisis due to power holidays and restrictions imposed on peak power consumption for a few years, adding to its cost constraints. The plant has started importing scrap which added to its financial burden.
V. Panneer Selvam, the AIADMK MP representing Salem, recently raised the issue of disinvestment in the Lok Sabha.
He had argued that the plant has enormous potential for expansion. Setting up a manufacturing unit for the production of household articles and an exhibition centre for the same would increase the business manifold, he had said.