In a desperate attempt to infuse life back into the ailing public sector enterprise CIWTC (Central Inland Water Transport Corporation), it has been decided to hive off more than one third of its existing workforce.
This is one of the drastic measures that the Union government has prescribed when it approved the bail-out package for the corporation last week.
The Kolkata-based corporation, which has the monopoly of operating barges through inland water in the country, presently has 2,300 people on its roll.
CIWTC plans to get rid off 900 people within three years, Commander S C Dua, chairman and managing director, CIWTC, said. Out of 900 employees to be curtailed, 350 will be axed through voluntary retirement scheme (VRS) and the rest through natural attrition.
This is one of the three drastic measures CIWTC is undertaking for its turnaround. Apart from pruning its staff strength, the company also expects Rs 13 crore assistance upfront, and Rs 6-7 crore every year for its sustenance.
Government has also proposed closing down of Deep Sea Repair Division (DSRD) and downsizing the Rajabagan dockyard. While DSRD used to do repair work for ocean going vessels, Rajabagan dockyard, with three dry docks, catered to small and medium size inland water transport (IWT) and coastal vessels.
The bailout package for CIWTC consists of waiving off its loan with interest, which stands at Rs 485.86 crore by March 31, 2001. It has the dubious distinction of incurring losses since its inception in 1967. The company has a paid-up capital of Rs 120 crore and the accumulated losses stand at Rs 578.70 crore.
When asked how the company which has the dubious distinction of posting losses every year of its operation, Dua said that corporation would try to run more barges and carry more cargo in its entire area of operation. He put the blame on the Inland Waterways Authority of India (IWAI) for not performing its duty properly.
"The inland waterways sector has been neglected for the last 50 years. They can not provide us the basic minimum draft needed for running barges. Moreover, there are not enough jetties on the riverside for cargo handling and least said about the facility for night navigation the better. Our activities are thus, severely handicapped owing to poor infrastructure of inland waterways," Dua alleged.
CIWTC, at present, operates in limited areas in the eastern and the north eastern region. The busier routes for CIWTC have been between Kolkata to Haldia, Kolkata to Assam through Bangladesh.
