Other States - Orissa

Workers’ union alleges violation of MoS

BHUBANESWAR: Workers of erstwhile Hirakud Industrial Works Limited (HIWL) have charged that the Kolkata-based private company that has taken over the State Government-run cable manufacturing unit is violating the memorandum of settlement (MoS).

As per the disinvestments policy of the State government, Versha Fabrics Private Limited (VFPL) was allowed to takeover HIWL based on the MoS finalised in June last year.

In a memorandum addressed to the Industrial Development Corporation of Orissa Limited (IDCOL), the workers’ union alleged that “although 16 months passed after the takeover, the VFPL completely failed to run the factory as per the terms and condition set by the High Court and in MoS.”

An action plan was submitted by VFPL in 2005 for development of the rolling mill and other units of HIWL but the business plan was yet to be executed by the company, they said.

Workers alleged that the VFPL committed to invest over Rs. 16 crores for development of different units but it was yet to pump in any investment after the take over.

“The production has reduced to only 5 to 10 metric tonnes per month as against the installed capacity of 6,000 metric tonnes per annum and no production activity in Hira Cable Works and IDCOL Rolling Mill has taken place since the takeover,” they said.

Employees of HIWL also alleged that the private company stopped current salary for four months along with seven months of old salary.

They urged IDCOL, which was running HIWL earlier, to conduct an inquiry on the entire disinvestment process and appoint an officer to make inspection of the affairs of the company. The government should cancel the agreement and secure the management from the VFPL, the workers demanded.

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