Move to close BILT paper unit opposed

The reported decision to wind up the Chowdwar unit of Ballarpur Paper Mills has elicited protests from local workers and trade union leaders.

Senior Congress leader and former Union minister KC Lenka yesterday said his party, if voted to power, would initiate a probe into the development.

According to recent reports, the company will engage a contractor to dismantle and transfer plant machinery. Reacting to the reports, a group of employees organised a sit-in outside the factory premises to protest against the move.

Lenka said the company's decision would violate an interim court order pending the final disposal of a case filed by about 65 employees of the plant. Lenka added that the court order had restrained the management "from alienating the property or transferring its ownership or the machinery from the factory site" and allowed only the "transfer of consumable chemicals and raw materials".

The Rs 200 crore Choudwar Paper Mill, earlier known as Titagarh Paper Mill No 3, was sold to the LM Thapar group for Rs 12 crore in 1988. The assets of the plant include 636 acres of land in Choudwar, Phulbani and Anugul districts.

The government at that time had given a host of concessions, including lower power tariffs, a sales tax concession for 10 years and waiver of forest royalty, to the new owners.

Lenka pointed out that the company had already offered voluntary retirement to 833 of its 904 employees, disregarding the terms of agreement with the state government. The present government had also refused permission to the Ballarpur Paper Mills management to close down the factory.