ROURKELA: Rourkela Steel Plant (RSP) is staring at a possible drop in Net Sales Realisation (NSR) after a robust first half of 2021-22 following steep rise in cost of imported coal.
Officers and workers of RSP apprehend this poor performance would further delay pay revision which has been pending since January 2017.
Former General Secretary of Steel Executives’ Federation of India and former President of RSP Executives’ Association Bimal Bisi claimed during the April-September period of 2021-21, RSP contributed Profit Before Tax (PBT) or gross profit of about Rs 2,500 crore to about Rs 7,800 crore PBT of SAIL.
Imported coal prices have more than doubled and are expected to rise further shortly, subsequently lowering the NSR for RSP and SAIL and loss in the fourth quarter.
This has further triggered the fear of Central government opting for privatisation of SAIL in the coming months leading pay revision freeze.
Bisi called for trade unions and officer associations of all SAIL plants to reach a consensus to settle the pay revision issue.
Notably, pay revision of SAIL executives’ is pending with the management insisting to first finalise the wage revision of steel workers. But trade unions want fringe benefits at par with officers to which SAIL is reluctant.
President of BMS-affiliated Rourkela Ispat Karkhana Karmachari Sangh (RIKKS), the recognised trade union of RSP, Himanshu Sekhar Bal, said RSP meets 80 per cent of its coal requirement with import from Australia and steep rise in imported coal price would increase production cost resulting in profits cuts.
“Lets not jump the gun as of now by assuming RSP and SAIL would end up with massive loss or SAIL getting privatised,” said Bal, adding that another meeting of the National Joint Committee on Steel (NJCS) is scheduled on October 4 and 5.