![]() Financial Daily from THE HINDU group of publications Friday, Jul 01, 2005 |
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Industry & Economy
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PSU TN company staff urge Centre to lift ban on NG explosives Our Bureau
Chennai , June 30 EMPLOYEES of Tamil Nadu Industrial Explosives Ltd, a State public sector manufacturer of explosives based in Vellore district, have urged the Central Government to exempt the company from the ban on production of nitro-glycerine explosives. They have also represented to the State Government to take up the issue with the Centre. The Tamil Nadu Industrial Explosive Ltd Officers Association has pointed out that the Commerce Ministry has permitted a private sector manufacturer, Bharat Explosives Ltd, Uttar Pradesh, to manufacture P3 type nitro-glycerine based explosives for one year from March 24. This would enable them to supply Singareni Collieries Ltd, Andhra Pradesh, and the Central Mining Research Institute, Dhanbad. The association has sought similar permission to supply such explosives to Coal India, Neyveli Lignite Corporation, Singareni Collieries and other public sector units. It may be recalled that the Commerce Ministry had banned possession, sale and use of nitro-glycerine explosives with effect from April 1, 2004, citing security reasons. According to the association, the company has lost 60 per cent of its revenue and incurred a loss of Rs 11 crore in 2004-05. The TEL Employees Joint Action Committee has appealed to the Prime Minister, Dr Manmohan Singh, to lift the ban on manufacture and use of nitro-glycerine explosives. It also sought the support of the Chief Minister, Ms J. Jayalalithaa, in urging the Centre to lift the ban. Tamil Nadu Explosives also should be permitted to manufacture the explosives along the lines of permission granted to Bharat Explosives. The livelihood of over 1,000 employees was at stake in this issue, it said. The State Government holds 82.14 per cent of the equity besides which the company has over 13,000 public shareholders. In 2002-03, Rs 31.29 crore of its total turnover of Rs 44.32 crore was from nitro-glycerine based explosives.
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