Date:23/09/2004 URL: http://www.thehindu.com/2004/09/23/stories/2004092305080300.htm

Karnataka - Bellary

Centre urged to revive Tungabhadra Steel Products

By Our Staff Correspondent

BELLARY, SEPT. 22. The All-India Trade Union Congress (AITUC), Bellary District Council, has urged the Prime Minister, Manmohan Singh, to take steps for the revival of the Tungabhadra Steel Products (TSP) at Hospet in the district, which is on the verge of closure.

It has urged the Prime Minister to intervene by directing the Union Ministry of Heavy Industries to announce a revival package and adequate working capital for the factory.

Resource crunch

In a letter, A.R.M. Ismail, general secretary of AITUC, Bellary, has drawn the attention of the Prime Minister about the resource crunch faced by TSP and about the plight of around 350 employees depending on it.

The employees had not been paid for over six months, he said.

He said that TSP, an ISO 9001 company engaged in manufacturing hydro-mechanical equipment required for river valley projects, power generation units and the like since 1960, was on the verge of closure for the want of working capital.

He also said that with the advent of new economic and industrial policies, the factory was in trouble.

Though almost 50 per cent of the work force had opted for the voluntary retirement scheme, the company had been unable to come out of the red, mainly due to bad administration.

Proposals

Mr. Ismail said that several proposals seeking working capital and revival of the company had been forwarded to the Bharat Yantra Nigam Ltd., which was under the Ministry of Heavy Industries and Public Enterprises.

There had been no response so far.

The factory was still functioning and expected to receive a number of orders from several prospective customers within the country and abroad provided the Ministry came forward to provide working capital.

The district had the potential of emerging as a "global steel city" in the future with many steel plants manufacturing sponge iron, pig iron, and other vital steel products.

The plants were being established in the region as they could easily access raw materials and were close to the ports.

The district unit of the AITUC wanted the Government to take note of all these factors while announcing the revival package.

Revival package

Mr. Ismail urged Dr. Singh to issue directions to the authorities concerned to announce a viable revival package with working capital as soon as possible and release the contingency fund for disbursement of salaries.

While stating that the working class in the region was deeply disturbed over the fact that the response from the people at the helm was indifferent, Mr. Ismail said that people were still optimistic that the new Government would do something to save the workmen and their families.