Jharsuguda: With several small and medium industries downing their shutters, Jharsuguda city that was once abuzz with activity, now cuts a sorry figure thanks to mounting unemployment.
At one point of time, the region showed great promise to become one of the largest industrial hubs of the state with a rapid growth in local economy, increasing employment opportunities, and robust infrastructure. However, several industries started reporting sick due to scarcity of raw materials, shooting up of production costs and a sharp dip in demand.
Jharsuguda district had witnessed a surge in industrialisation in 2005. Several industries entered into agreements with the state government to procure iron ore from Keonjhar-based mines, water from rivers Ib and Bheden, prime government and private land and coal from MCL. On assurances from the government, one sponge iron factory after another mushroomed in the district.
They ran successfully for nearly a decade resulting in massive peripheral development. The success also paved the way for construction of a clutch of luxury hotels, setting up of offices of several infra development agencies, hikes in land price and house rent, construction of new buildings and several sources of entertainment.
The auxiliary industries also flourished with the growth of sponge iron and other plants.
This led to the growth in local economy and opened employment opportunities for local youths.
However, the slump in international market and state government’s failure to meet iron ore needs of the plants coupled with a fall in market price of iron and rising production costs threatened to put factory owners out of business. While they resorted to staff retrenchment to reduce production costs, workers staged a stir to protect their livelihood.
Several plants had to down their shutters after failing to turn in profits on a consistent basis.
Among the large and medium scale sponge iron plants, Jain Steel and Power Limited (JSPL), Singhal Ismat at Hirma, PTSL at Lahandabuda, MSP Metallics and Madhav Ispat at Marakuta have already been closed. Jay Hanuman Udyog Limited of Raghunathpali region under Kolabira block has stopped its production temporarily for similar reasons. The fate of several industries is uncertain ever since the CBI began its probe into alleged irregularities committed in the allotment of iron ore mines and cancellation of allotment of coal blocks.
A couple of bigger projects like Vedanta, SMC and Action Ispat are managing to stay afloat by slashing production costs, it is learnt.
On the other hand, poor industrialisation has affected other small scale industries.
For example, luxury hotels set up in Jharsuguda expecting brisk business are now lying vacant. Their owners are now struggling to repay the loans which they incurred to set up these ventures.
Besides, thousands of people are left unemployed with the closure of several sponge iron plants.
While the dismal state of industrialization has already poured water on the hopes of further employment, the western Orissa town is staring at massive unemployment, said observers. PNN