SAIL Begins to Wind Up Raw Materials Division Amidst Huge Protests

SEATTLE (Scrap Monster): The state-owned steelmaker Steel Authority of India Limited (SAIL) is reportedly going ahead with its decision to dissolve the Kolkata raw materials division, despite strong protests from the state administration.

As per reports, the company has already issued transfer orders for as many as 100 employees at the facility. The employees have been asked to shift to various other locations including Bokaro, Rourkela and Bhilai with immediate effect. The labour unions had strongly protested the move. The decision is feared to impact supply of raw materials to Durgapur and Burnpur steel plants.

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It must be noted that the employees’ union had filed a writ petition in the court asking for a stay on the proceedings. However, the petition was turned down by the single bench of the High Court on Friday. Also, the state finance minister Amit Mitra had written to the Union government, requesting a reversal in the decision, blaming that it has been engaged in shifting PSU headquarters from Kolkata since it came into power.

SAIL had announced its decision to dismantle the raw materials division in Kolkata during mid-June this year, thus transferring the control of mines to Rourkela Steel Plant (RSP) in Odisha and Bokaro Steel Plant (BSP) in Jharkhand.