Falling iron ore production from its captive Rajhara mine in Chhattisgarh, SAIL is planning to source 50,000 MT iron ore for its BSP plant.
One of the units of SAIL – Bhilai Steel Plant (BSP) is planning to purchase 50,000 MT of Iron ore from NMDC each month as per market sources. The steelmaker is relentlessly facing the low productivity issue from its captive iron ore mines in Chhattisgarh over the period of time.
How have iron ore supplies to SAIL BSP been interrupted?
Earlier from the Rajhara mines supply 9 rakes per day to the steel plant now they are supplying only 6 rakes per day. Owing to lack of workers in Rajhara has produced only 6 working days out of 7 working days.
An additional cost which SAIL, BSP will have to incur – If SAIL, BSP purchase iron ore from NMDC they have to bear additional INR 3,200/MT. On the other hand, if BSP (Bhilai Steel Plant) is getting iron ore supply from its mine at Rajhara its cost is around INR 600-800/MT.
Once the news broke in the mines, union of workers from Rajhara and other mines in support of the company meet CEO of BSP and suggested to introduce incentivize scheme called (Daily Reward Scheme) to increase production from its mines. By introducing reward scheme, production of iron ore from its mines will increase which equally benefitted the employee and steelmaker as well. BSP has three iron ore mines of its own Rajhara, Dalli & Rowghat in Chhattisgarh.
Lack of manpower, essential medical amenities, electricity & water facilities are some common problems that workers are facing.
Concerned officials have already started to study of its cost and benefit analysis. It will take another one month to scrutinize and submit its report. Based on that report any further decision will be taken.
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