Ore export ban brings production to a halt

CHITRADURGA: Ban on extraction and transportation of iron ore in Bellary district had a strong impact on the pig iron production unit of VSL Steel Plant at Paramenahalli village of Hiriyur talukThe plant owned by the Lad brothers, has stopped production for the last two months rendering more than 900 workers—300 regular and 600 contract employees— joblessThis happened after the SC appointed Central Empowered Committee conducted a detailed enquiry into the effects of mining on environment in Bellary and recommended a blanket ban on all mining activities that was later upheld by the forest bench of the Apex courtThis apart from creating insecurity among the employees, has sent the wrong signals to investorsThe plant closure has a precedent: the closure of the Vani Vilas Sugar Factory in 2001, which too, resulted in thousands being rendered joblessWorkers are demanding the intervention of the Central and state governments in formulating a mining policy and supporting the steel industrySenior manager (human resources) of the plant Ramesh Kulkarni confirmed, “The suspension of production in the unit for the last two-and-a-half months due to scarcity of raw material (iron ore) is due to the blanket ban of the Supreme Court.” The plant which has come up in 100 acres of land was started in 2005 at a cost of `120 croreThe plant used to consume about 800 metric tonnes of iron ore daily which was extracted from the mines of the company located at Sandur in Bellary district and produced about 1.44 lakh metric tonnes of pig iron annuallyThe iron produced here was supplied to foundries located in Punjab, Andhra Pradesh, Tamil Nadu, Gujarat, Maharastra and Goa for designing dies and other subsidiary steel products; the plant closure has thrown a spanner into the works of these foundries for want of raw materialNaturally, the company has put on hold its expansion plansA a cinder plant which was supposed to be setup at a cost of `60 crore and employ about 250 workers has been stopped midwayFactory labour leaders Rajashekhar, Mahantesh, Akeeb Rehaman and Fathima have demanded the government to formulate a mining policy in the state