A grinding halt in supplies of iron ore and chrome ore triggered by local transportation stir has forced Visa Steel to go for temporary suspension of its units at Kalinganagar in the eastern state of Odisha. All the operating units at its plant complex- blast furnace, sponge iron, steel melting shop (SMS), rolling mill and ferro chrome have been shut temporarily as raw material supplies dried out.
The steel maker has already served a notice to its employees engaged in these units not to report for duty from August 21 barring those involved in essential services. The company has also communicated its decision to the local labour office at Jajpur. All the units would remain suspended till the company comes out with a fresh notice or order.
The lifting and transportation of iron ore from Odisha Mining Corporation (OMC) office stationed at Daitari mines to Visa Steel plant site has been stopped abruptly without any prior information in any manner, rued a Visa Steel official. This is despite the fact that OMC’s raw material supplies continued as usual to the other units operating at the Kalinganagar complex touted as the steel hub of the state. In addition to Visa Steel, Tata Steel, Jindal Stainless Ltd, Mesco Steel and some other mid-sized steel plants have installed their facilities at the complex.
Chrome ore supplies to Visa Steel facility has also come to a grinding halt from OMC’s Kaliapani mines. The steel company after struggling to run its different constituent units for barely two days with available raw material stock took the painful decision to shut operations.
The company is blaming political disturbances at the site for disruption in raw material supplies. It senses collusion between local transport association and an MLA that has led to the crisis. Truckers have stopped ore supplies to Visa Steel’s Kalinganagar plant for the past four days complaining steep pollution levels.
The steel company has approached OMC to resolve the crisis failing which it would shutdown of the blast furnace and DRI plant would become unavoidable.
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