Neyveli strike enters third day; production unaffected

The strike at Neyveli Lignite Corporation (NLC) in Tamil Nadu entered the third day today with both the sides remaining unrelenting.

Nearly 15,000 Neyveli Corp workers, owing allegiance to the ruling party Dravida Munnetra Kazhagom-supported Workers Progressive Union and the Pattali Thozhir Sangam began their strike from June 30 night demanding higher wages.

The management of the Tamil Nadu-based Miniratna lignite-based power producer said negotiation with the unions is on in Chennai in the presence of the regional labour commissioner but the workers are adamant for an early cut-off date for additional increment and hike in allowances.

"We have agreed to most of their demands including one additional increment of 3 per cent from September 2009 besides a 71 per cent hike in allowances from January 2010. These are the highest benefits for workers by any PSU including Navratnas and Maharatnas but the workers are adamant for early cut off date," a senior NLC official told PTI over phone.

Workers are demanding implementation of additional increment from January 2007 besides 71 per cent hike in allowances from January 2009.

"As per the management offer we will have to pay arrears to the tune of Rs 574 crore but if we go by the demand of the unions we will have to shell out Rs 714 crore," he said.

Meanwhile, the management also claimed that so far production at all the three mines is normal and the power plant recorded an above average 2,100 Mw production today with the help of supervisors and 4,000 officers. The daily average production at the plant is 2,000 Mw.

The official said the state administration is keeping a close vigil on the situation and have deployed CISF to avoid any untoward incident. The state-owned company is a lignite-based power plant and employs about 19,000, including 15,000 workers.

NLC has an installed capacity of 2,490 Mw and it plans to augment this capacity to about 4,300 Mw by 2012. Its projects under-execution include a 1,000-Mw project at Tuticorin, Tamil Nadu, a 500-Mw extension of the Neyveli plant, and a 50-Mw wind power project.

It registered a profit after tax of Rs 1,604.86 crore in FY10 compared to Rs 1,046.01 crore in the previous year.