The Centre of Indian Trade Unions (CITU) criticised the Centre’s proposed move on the disinvestment of Salem Steel Plant (SSP) and called upon it not to go ahead with the proposal.
Financial recession at the international level and the liberal import policy, affected the functioning of the steel plants in the country including the SSP. The Salem Steel Plant has to bear a financial burden of Rs. 240 crore every year due to the interest on the funds spent for expansion etc.
The Centre should relieve the SSP by writing off the interest.
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The SAIL and many private industrial houses are facing severe financial crisis. The government’s proposal at this juncture, to go for disinvestment, is totally unacceptable and condemnable, a resolution adopted at district committee meeting said. The resolution said that the Centre has continuously ignored various avenues which would have immensely benefitted the SSP in augmenting its production.
The proposal of the government to sell properties worth Rs. 15,000 crore will badly hit the industrial progress of the State, it said.
The NDA government attempted to sell the SSP to a private corporate house in 2004, it said.
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