Salem Steel Plant executive director M P Sinha has been removed from the post pending the outcome of the Central Bureau of Investigation (CBI) case against him, and shifted to the Steel Authority of India (SAIL) corporate office here as director, business planning.
The post of director (business planning) was specially created for Sinha.
According to informed sources, the understanding is that Sinha will now be asked to put in his papers.
The executive director (works) of Rourkela steel plant, G R Ramaseshan, takes charge as executive director at Salem.
This is the second such posting in less than a week at the countrys largest steel producer, SAIL.
Last week, the managing director of Rourkela steel plant B N Singh was relieved of his job and moved to the SAIL corporate office in New Delhi as director (personnel).
He was replaced by A K Singh SAILs director (personnel) who took over as the managing director of SAILs Rourkela steel plant (RSP).
Singhs candidature for the post of chairman cum managing director of the Visag steel plant, thus suffered a serious setback with the CBI failing to give a no-objection certificate pending the outcome of a case filed gainst him. Following this, the Central Vigilance Commission has been unable to clear his name for the top job.
The CBI is investigating a case filed against B.N. Singh, about seven years ago pertaining to a time when he was posted at Indian Iron and Steel Company.
The Public Enterprises Selection Board had earlier shortlisted two candidates for the post of chairman cum managing director of Vishakhapatnam steel plant a post lying vacant since March 31. Besides Singh, the other shortlisted candidate was G S Garcha, executive director at SAILs raw material divison at Calcutta. Incidentally, Rourkela steel plant, which underwent a massive modernisation, suffered the highest amount of losses last year with net loss touching Rs 315 crore in 1996-97.
In 1996-97, the Salem steel plant made losses of Rs 38 crore. During April and May this year the plant produced 10,800 tonnes of stainless steel with sales over 10,000 tonnes.
In the non-stainless steel category the total production touched 21,410 tonnes with sales 18,500 tonnes.
The Salem steel plant is in the midst of a major modernisation programme. Apart from full utilisation of existing hot and cold rolling facilities, introduction of backward inegration of SSP at Rs 600 crore is due to start from the end of 9th Plan period (1997-2002).
