Trade Unions raise voice as VSP announces MoU with Jindal – Times of India

VISAKHAPATTNAM: Vizag Steel Plant (VSP) CMD Atul Bhatt informed the representatives of trade unions about the MoU with the Jindal Steel and Power Limited (JSPL) for ensuring the much-needed working capital support for the raw material requirement for starting and operating the Blast Furnace III which is planned for blowing -in on December 30. However, the trade unions condemned the statement of the VSP management and alleged that they only forcibly entered into CMD’s office to raise their voice against the MoU with JSPL and not CMD arranged any interactive meeting. They organized protests in the plant on Friday.
The CMD said that the arrangement with JSPL will ensure availability of about Rs 800-900 crore for VSP in the form of working capital advance or the raw materials required for consistent operation of BF-III. For this arrangement, the steel plant would supply about 90,000 MT of cast blooms every month from Steel Melting Shop-2 (SMS-2) of the VSP. Trade unions raised concern over the losses also.
The plant management says that this arrangement with JSPL will enable the steel plant to generate additional revenue from increased sales of about 1 Lakh tonnes of saleable steel even after the supply of committed quantities to JSPL. This initiative will result in a monthly increase of sales turnover of around Rs.500 Crores per month and is likely to reduce losses by about 50-100 Crores per month as a capacity of 2 Lakh tonnes of Hot Metal per month would be produced in BF III.
“Why did the management make a decision hurriedly and accorded MoU on December 19? You assured that after consultation of workers only any step would be taken. Negotiations are going on with Tata and Sail too. Why the hurried decision was taken when there was a chance to negotiate for better benefits for the company?” the recognised trade union president K Ayodya Ram asked.
Trade unions demanded to show the MoU copy and alleged conspiracy behind the MoU. “Why Steel Authority of India Limited (Sail) has not come forward? Sail needs steel and we need coal. VSP sold out the plant at Raibarrelly to Railways for Rs 2000 crore. We can take a minimum Rs. 1000 crore from it to address immediate needs,” he said.

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button