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RSP fertilizer plant faces closure

By Our Staff Reporter

KOLKATA. Jan 1. The Steel Authority of India Limited has decided to close down the fertilizer unit at the Rourkela steel plant. The existing employees of the plant will be redeployed in other operations in the RSP. The formal decision in this regard is expected shortly.

In a meeting on December 11, the board of directors has given an `in principle' approval to the proposal "provided the financial bid of the private party does not match with the asset valuations done by MECON."

Giving a clear hint that the divestment negotiations with Deepak Fertiliser has fallen through due to valuation mismatch and other financial aspects, a company insider said that efforts were on to separate a maximum number of employees in the fertilizer plant through ongoing voluntary retirement scheme (VRS) opened this month.

The fertilizer plant has 750 employees on its roll. A decision on the redeployment of those not opting for retirement was expected once the VRS was over.

Already brought down the monthly losses from Rs. 5 crores to Rs. 2.5 crores by suspending the operations in the unit for last couple of months, RSP expects to cut the losses by further Rs. 1-1.50 crores following a formal closure of the fertiliser plant.

"We are prepared for a closure'' of the unit to safeguard the greater interests, the RSP managing director Sanak Mishra told The Hindu.

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