Officers' body moots ideas to bring RSP loss down

When SAIL suffered a net loss of C4,137 crore, the share of RSP was C2,523.52 crore in 2015-16 financial year

Published: 17th September 2016 07:01 AM  |   Last Updated: 17th September 2016 07:01 AM   |  A+A-

ROURKELA: Even as the Rourkela Steel Plant (RSP) continues to face financial loss for the second consecutive year, its Officers’ Association has mooted a series of proposals to arrest the situation. They have suggested that retention of gratuity money of retiring workers in lieu of quarters, relooking into the scrap recovery policy and checking power theft may help the PSU steel maker in offsetting loss.

The balance sheet of SAIL in 2015-16 shows that when it had suffered net loss of `4,137 crore, the share of RSP’s Loss Before Taxes was a whopping `2,523.52 crore, especially due to drop in Net Sales Realisation (NSR), depreciation charges and interest on capital expenditure.

With SAIL reporting net loss of `536 crore in Quarter One of 2016-17, the RSP’s loss share is considered to be substantial. At this juncture, RSP should consider saving money exploring all available options.

RSP Executive Officers’ Association (RSPEA) president Bimal Bisi said every month about 100 workers and executives are attaining superannuation and their gratuity shares come to `25 crore to `30 crore. The RSP should come up with offer to retain the gratuity money without interest and in lieu of it, they should be allowed to keep staff quarters for the next 10 to 15 years.

Rourkela Ispat Karkhana Karmachari Sangh (RIKKS) general secretary H S Bal said there is no proper account of valuable magnetic and non-magnetic scraps retrieved by Ferro Scrap Nigam Ltd (FSNL) from its slag and sold back to RSP for reuse. He said that RSP should also relook into the terms and conditions with FSNL to gain from recovered scraps and also check rampant pilferage of valuable scraps in this crisis situation.

FSNL, a Central PSU and wholly-owned subsidiary of Metal Scrap Trade Corp Ltd, is engaged in mechanised recovery and processing of magnetic and non-magnetic scraps from RSP’s slag.

A top police officer said for almost six decades now the RSP has failed to protect its slag dumping yards. “Slum dwellers have made scrap picking as their livelihood and scrap-mafia linked to them are flourishing at the cost of RSP,” he said, adding that if scrap collection with proper safety measures is legalised, then RSP may directly benefit and reduce unnecessary burden on police and CISF.

Odisha unit working president of Hind Mazdoor Sabha, BD Barik, said RSP can save substantial amount by checking power theft by slum dwellers at its Rourkela Industrial Township (RIT) by legalising energy connection.


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