The Hindu Business Line : TEL employees oppose ban on NG explosives

THE Commerce Ministry's decision to ban production of nitro glycerine explosives from April has jolted the employees of the State-run Tamil Nadu Industrial Explosive Ltd.

According to a press release from the TEL Employees' Joint Action Committee formed to oppose the move, the Commerce Ministry has speeded up the process of phasing out nitro glycerine explosives.

According to the original proposal, nitro glycerine explosives production had to be stopped in April 2006. The manufacturers were to halve production between April 2002 and March 2004, and cut production by another 20 per cent between April 2004 and March 2006.

Tamil Nadu Industrial Explosives is the only public sector manufacturer in the country and the decision will affect the livelihood of the 1000 employees and their families, the committee said.

On an earlier occasion, the employees union had maintained that the security reasons cited for phasing out nitro glycerine-based explosives were not tenable. This type of explosive was being used in developed countries and was ideal for application in rural areas for well digging and road laying.

At the company's annual general meeting in December 2003, officials had said that it has set up a Rs 5-crore facility for manufacturing emulsion-based explosives even as they reduce manufacture of nitro glycerine-based explosives. The production of emulsion-based explosive would put the company on the growth path.

Nitro glycerine explosives are the main products for Tamil Nadu Industrial Explosives accounting for more than 60 per cent of its sales. About 300 workers are employed in producing these explosives and they will now have to be shifted to other areas, according to reliable sources.

The company, which wiped out accumulated losses of Rs 5.51 crore in 2002-03, has reported a net profit of Rs 77.88 lakh in the first six months of 2003-04 on net sales of Rs 21.75 crore.

Tamil Nadu Industrial Explosives is the first State-owned undertaking identified for disinvestment. The State Government had invited bids in November 2002 from consultants to help it in selling its 83 per cent stake in the company and had also short-listed five consultants. However, a decision on that is yet to be taken.