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Reeling under raw material crisis, Visa Steel is now facing agitation from some contractual workers who have staged a blockade at the main gate of the company's 0.5 million tonne steel plant at Kalinganagar, demanding reinstatement.
In an effort to cut the cost of operations, Visa Steel has not renewed contractual work in the units facing shutdown because of raw material unavailability. Due to non-availability of iron ore, the steel plant facilities like blast furnace, steel melting shop (SMS) and rolling mill continue to remain under shutdown.
The move has affected 250 contractual workers who have been rendered jobless. The local leaders have taken advantage of this situation and are forcing the management to take back the workers regardless of the fact that the steel plant units are remaining inoperative for a long time for want of iron ore. The workers' union has threatened to stage blockade at the plant's main gate, a situation that can create serious operational problems for the plant and eventually force the company to shut down the operating units.
Meanwhile, the local police after getting information from the management is assessing the situation. The company has been suffering heavy losses since 2011-12 and has been compelled to opt for Corporate Debt Restructuring (CDR). Though the company has invested Rs 3,500 crore on its project, it has been unable to secure iron ore linkages. The recent interim order of the Supreme Court, calling for suspending operations of 26 mines operating under deemed extension without express orders of the state government, has only exacerbated the situation.
