Hunger strike on July 29 to oppose bid to privatise Salem Steel Plant

In a statement, Alagiri squarely blamed Steel Authority of India (SAIL) for the loss and fund crunch suffered by SSP, which was the only PSU producing high quality steel in the country and which has a market size equivalent to Jindal Steels. Accusing the ruling BJP of trying to sell three steel plants citing the losses suffered by them during the last five years, Alagiri said the produce of SSP was used to manufacture trains and even ISRO scientist have complimented the PSU in Salem for delivering high quality rust-free steel products for Chandrayan-2.

The TNCC president referred to the Rs 2,500 crore modernisation project for which the plant had invested Rs 1,000 crore and sourced Rs 1,500 crore as multiple borrowings in 2010, Alagiri said the plant has been paying Rs 100 crore every year since then as interest and the plant calculates the loan interest and depreciation as its loss. The Centre has been showing extraordinary interest in selling the plant by citing this loss, he alleged, attributing the fall of the plant to shifting its sales and marketing wing to Kolkata which has resulted in the sale volume plummeting to less than 25% of the two lakh tonnes annually sold by the plant when marketing was handling in Salem.

Accusing the management of not revealing details of its finances to even employees through RTI, Alagiri said the Centre would incur the wrath of the people if it transfers to private parties, the 2,500 unused land of the total 4,000 acre acquired from local farmers for the plant, which was the sole livelihood source of 2,000 employees.