The state government found itself in a tight spot in the assembly with legislators of Opposition political parties as well as the ruling Biju Janata Dal (BJD) questioning the decision to privatize Konark Jute Mill and raising grave concerns over the future of the workers.
Training the guns on the industries minister Raghunath Mohanty, independent MLA Pratap Chandra Sarangi and NCP leader Amar Prasad Satapathy said, the government has failed squarely to manage this only jute industry in public sector in the state. The minister needs to inform the house on the present employee strength of the mill, their outstanding dues and the steps taken to ensure that their future is not at stake post privatization.
BJD stalwart and former agriculture minister Damodar Rout blamed managerial inefficiency for the mill turning sick.
“It is because of the callousness of the bureaucracy that PSU mills are turning sick. Let us try to revive sick units like the Konark Jute Mill in the interest of farmers. Our focus should be on enhancing managerial efficiency instead of handing over one sick mill after the other to a private player,” he said.
Justifying the government's decision to privatize the PSU jute mill, Mohanty said, “The mill's privatization was inevitable as its accumulated losses were mounting despite capital infusion. The losses had reached Rs 27 crore by 2011. The Board for Industrial and Financial Reconstruction (BIFR) had approved a rehabilitation package for the jute mill in 1992-93. Later, the matter was referred to the Orissa High Court in 2002-03.”
The minister allayed fears of retrenchment of employees post privatization.
The state government in November 2011 had decided to sell the Konark Jute Mill at Rs 32 crore.