Idcol to consider higher wages to Konark Mill workers

The Orissa government has decided to privatise the sick Konark Jute Mill instead of shutting it down.

However, before going ahead with the privatization process, the board of Industrial Development Corporation of Orissa Ltd (Idcol), the current owners of the property, would take a final call on the demand of the workers for higher wages.

Meanwhile, the state government has decided to hold negotiations with Piyush Suppliers, the company which has submitted a bid for purchase of the unit through the Company Court, as per the terms and conditions of the government.

This was resolved in a high level meeting chaired by the state finance minister Prafulla Chandra Ghadai today. Talking to the media after the meeting Ghadai said, about 800 workers engaged in the unit are demanding higher wages.

The cumulative loss of the unit has reached Rs 24 crore with the company owing Rs 60 lakh to the jute farmers. Besides, there is claim of Rs 7 crore towards the payment of statutory dues like ESI and EPF among others.

As the payment of higher wages to the workers depends upon the financial health of Idcol, its board would deliberate on the issue and take a decision, he added.

Ghadai said, the government would take steps to run the unit instead of shutting it down. If Piyush Suppliers doesn’t agree with the terms and conditions of the government, fresh tenders would be invited for sale of the unit.

Sources said, production at the Konark Jute Mill is at the minimum with skeletal staff. The unit earlier had a work force of 1500. This has been reduced to 800 following introduction of voluntary retirement scheme (VRS)..

While there are 200 looms in the unit, only 40 looms are working on conversion basis. At no point of time, the unit has been able to operate at the optimum level which is 15,000 tonne per annum, sources added.