The Hindu Business Line : Union urges Vizag Steel to promote ancillary units

The Steel Plant Employees' Union (affiliated to the CITU) has pleaded that the Visakhapatnam steel plant should encourage setting up of ancillary units in the surrounding districts and it should offer steel at a lesser price (at least by Rs 1,000 per tonne) in the local market.

In a petition submitted to Mr R.S. Pandey, Union Steel Secretary, here on Tuesday, the union said that not many ancillary units and small units were coming up in the vicinity of the Vizag steel plant due to the lack of encouragement.

The situation was different in the case of other steel plants, both in the public sector and the private sector.

Employment Generation

Mr N. Rama Rao, Union Secretary, said the steel plant was supplying steel products all over the country at the same rate, bearing the transport costs.

It could well-afford to reduce the price to the local units, as there would be saving in transport costs, and this would result in setting up of many steel rerolling mills and mini steel plants.

He said it was the bounden duty of the Vizag steel plant to help such smaller units as it would result in large-scale employment generation. "The record of the Vizag steel in this respect is very poor," the union said in the petition submitted to the Secretary and urged him to set it right.

PVT PLAYERS OPPOSED

The union also urged the Steel Secretary to prevent the entry of the private sector in the expansion works of the steel plant.

"There are plans to bring in private investment in the construction of the thermal power plant and the air separation plant. There is no need for it and it should be stopped," the union pleaded.

The union also sought wage hike for the contract workers in the plant and employment opportunities for the displaced in the plant expansion.

More Stories on : Trade & Labour Unions | Steel | Andhra Pradesh

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