Tribal workers at Nilanchal Iron and Power Ltd are up in arms against the companys decision to close the plant. The company acquired around 80 acres of land in Kandra for setting up the plant.
The company, a subsidiary of Kolkatabased Jai Balaji Group had started operations in Ratanpur village of Kandra block in 2006. The company management also provided jobs to nearly 160 tribal youths whose families either donated their agricultural land or were affected by the plants operation.
The company has decided to close the plant established at the cost of Rs 172 crores from the end of June. The closure notice was also put up on the plants gate. The notice created a furor among the workers especially those whose land were acquired for setting up the plant.
According to Sumit Mandal, secretary of the companys labor union, no consultation or opinion was taken from workers or the union on the closure of the unit. Mandal says, Closure would lead to a lot of violence as there is no clarity over what will happen to the agricultural land acquired by the company.
Around 70 families who were completely dependent on agricultural land for their livelihood took the compensation package on the assurance that jobs would be given to them in the unit. Mandal also fears riot like situation if the company is closed indefinitely. Closure notice also mentions that workers would be given salary till the month of August and operations would close by June 30.
Companys general manager Gangadhar Bajpayee claims that company was established in 2005. However, due frequent protests and demonstrations at the plants gate, it remained closed from 2011 to 2015. Operations have been not very smooth as production is disrupted by frequent protests over small issues. The company has suffered massive loss thus decision to close it has been taken, he says.
He also apprised that the closure and exit decision would be taken after consultation with the district administration. The issue of land ownership of acquired land would be taken in consultation with the labor union, district administration, and gram sabha.
Type of Land
Private and Common
Type of Common Land
Forest and Non-Forest
Total investment involved (in Crores):
Type of investment:
Land Area Affected