Orissa Sponge Iron and Steel Limited

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The notice said the plant has failed to repay loan to the tune of Rs 209 crore to SBI, Bank of India and Punjab National Bank. The management declared lockout on October 14, 2012, after the labourers allegedly staged a wildcat strike.

Through the notice, the SBI has warned the public not to deal with the property. To recover the pending dues, the banks have taken possession of buildings, machinery, finished goods, stores, spares and entire current assets registered in the name of M/S Orissa Sponge Iron and Steel Limited. The landed property taken into possession include 42.66 acre in Nuagaon village, 14.18 acre in Jhadapasi village and 13.16 acre in Saraskula village.

Deputy general manager (personnel and administration) of the plant Manjushree Das said, "I have no information about the notice as I was out of station." Das said she could say something after going through the notice.

Secretary of labour union, Ramakanta Mohanta said, "We want the plant to run so that we can sustain our families. We will stage a strike in front of assistant labour commissioner office on April 30, demanding opening of the plant and payment of dues."

The plant, touted as the first sponge unit in India, was established 1982 and inaugurated by the then President Gyani Zail Singh. The unit was making profit till 2000, plant sources said. Later due to mismanagement, the plant started incurring losses and by the time lockout was declared it was in the red, employees alleged.
The plant at its peak was producing 2.5 lakh million tonne (MT) sponge iron and 1 lakh MT billet per annum. Similarly the plant produced 40 mega watt electricity from its three units. There are about 1,500 regular and contractual employees apart from 145 officers. Now, the plant is mired in litigations.