Employees of the Kozhikode-based SAIL-SCL Kerala Ltd., earlier known as Steel Complex Ltd. Kerala, are hopeful that a State Cabinet meeting scheduled for Wednesday will discuss their demand to resume the company’s operations.
The functioning of the company, a joint venture of the Steel Authority of India Ltd. and the State government, was stopped for over five weeks after the Kerala State Electricity Board cut off its power connection as payment dues amounted to ₹2.6 crore. Disbursement of employees’ salaries too was disrupted. Right now, there are around 50 permanent and 150 temporary employees.
Trade union sources said that SAIL had been supplying billets to the company for the production of TMT steel bars. There was an agreement to procure 30% TMT steel bars required for works undertaken by the Public Works Department from the company. However, the proposal hit a roadblock after it was pointed out that the letter issued by the government for the purpose did not have Cabinet approval. Later, questions were raised about the quality of the steel bars. It was also pointed out that there were no facilities to transport the steel bars to contractors.
Meanwhile, SAIL stopped supply of billets. SAIL authorities said that they would resume the supply only after the government issued an official order on procurement of steel bars for PWD works. The employees allege that private companies were behind the campaign that their products were of low quality.
The issue was discussed at a meeting of officials and SAIL authorities convened by Chief Minister Pinarayi Vijayan in Thiruvananthapuram on Monday.
The government demanded that SAIL charge only the production cost of billets while supplying them to the company.
SAIL urged the government to take over the marketing of the TMT steel bars. However, there was no consensus on these issues.
It is learnt that Mr. Vijayan directed the company managing director to submit to the SAIL authorities a feasibility report on resuming the operations of the company. The government is likely to hold talks with them next week after it is taken up at the Cabinet meeting.
