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Balco workers promise to maintain smelter

Striking employees at the newly privatised Balco aluminium plant in Chhattisgarh promised to maintain the smelter to prevent serious damage but would not say when they would start.

The strike by more than 4,000 workers was launched last weekend to protest against the government's sale of Balco to metals firm Sterlite Industries.

The strike is the first big test of the government's plan to accelerate privatisation, the cornerstone of the economic liberalisation programme.

"The workers will donate their labour," M L Razak, spokesman for the "Save Balco" group opposing the privatisation of Bharat Aluminium Co Ltd (Balco) said.

But he would not say when the help would be provided and disputed Balco's statements that the strike was in danger of causing major damage to the smelter at the plant.

"It (the smelter) is not in that serious a condition. It would easily run for another one week," Razak said.

"Manpower will be provided before that but we will not be driven by the ruling party forces who are threatening us if we do not return to work, " Razak said.

The workers launched the strike last weekend to protest against the government's sale of its 51 per cent Balco stake to Sterlite, the country's first major privatisation in a decade.

The company management said earlier the situation at the plant in Korba, 280 km from the state capital, had become increasingly serious with a shortage of labourers hurting maintenance.

It said there were 475 officers and 50 workers in the plant.

Potential serious damage

"The metal is slowly solidifying in the pots and if that happens it will cause severe damage to the smelter," Sahir Ahmed, Balco head of personnel and administration, said on Wednesday.

The company said it had appealed to the unions to provide 191 workers for each eight-hour shift to maintain the plant.

Also on Wednesday, the Supreme Court ordered the Chhattisgarh government to protect Balco workers willing to resume work. The court said the state government should not disrupt water, power or food supplies to the Balco plant.

Chhattisgarh's Chief Minister Ajit Jogi, who is backing the strikers, has said the only solution is for Balco to return to being state-run.

"I do hope the government of Chhattisgarh will now see reason and implement the order in letter and spirit," Divestment Minister Arun Shourie told reporters in New Delhi.

Balco runs a 200,000-tonne-per-annum alumina plant, a 100,000-tonne aluminium smelter and a 40,000-tonne hot and cold rolling mill at the plant.

The financial loss from the strike has been estimated at Rs 15-20 million a day. Officials said once the smelter was closed, it would not be possible to restart it immediately and would cost at least Rs 400 million.

Balco has also shut three units of the power plant because consumption has drastically fallen due to the smelter's closure.

Officials had earlier said daily aluminium output loss because of the strike was about 270 to 285 tonnes.

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