Barbil: The new export duty levied by the Union government has allegedly taken a heavy toll on state’s steel industries and led to slump in the steel sector. A private steel firm Shri Jagannath Steels and Power Ltd (SJSPL) at Uliburu on Barbil outskirts in Keonjhar district halting production at its pellet plant Wednesday is a case in this point.
The firm has not only stopped production but also has served a notice Tuesday urging all its employees and contractors to work only for 15 days in a month on alternate days on the pretext of the new export duty. Moreover, the plant has also declared Sundays as a compulsory holiday, the plant authorities informed in the notice. The new rules will be effective from May 26, Thursday, the company authorities informed in the notice.
The new rule has sparked resentment among the employees and contractors which they termed as indirect dismissal from their service. This has sparked concern among the employees as they ponder over how to manage their livelihood with the salary they will be getting by working for only 15 days a month. An employee Sudhanshu Sekhar Rout said the plant has over 600 employees working in various sections. The plant has failed to export pellets around 1.5 lakh to 2 lakh tonne following a 45 per cent increase in export duty by the Centre.
As a result, the company has suffered loss while the employees and labourers were equally at trouble. He urged the government to intervene and make arrangements to safeguard the livelihood of labourers and employees. When contacted, Jyoti Ranjan Patra, human resources head of the plant said that the 45 per cent export duty levied by the Centre has impacted the production and market. The company has failed to sell off large quantity of its goods for which it has stopped production.
The firm is trying to retain the labourers and employees instead of dismissing them from service for which they have been urged to report for duty on alternate days through a notice served to them Tuesday. Attempts are being made to keep the present situation under control.
He urged the Centre to reconsider its decision and waive the export duty failing which will severely affect the steel industries, he added.
