Indian Railways News => Topic started by puneetmafia on Dec 28, 2012 - 09:00:02 AM


Title - Row over RINL’s investment in UP, Bengal
Posted by : puneetmafia on Dec 28, 2012 - 09:00:02 AM

Unions ask management to cancel the MoUs signed with Railways
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The decision of Rashtriya Ispat Nigam Limited (RINL), the corporate entity of Visakhapatnam Steel Plant, to invest Rs.1,000 crore on a forged wheel factory at Rae Bareli in Uttar Pradesh – the constituency represented by UPA Chairperson Sonia Gandhi – is snowballing into a controversy.Some of the union leaders of VSP have strongly criticised the decision of RINL management yielding to political pressure in matters of investments by the navratna company.The company is investing outside the State ignoring the objectives for which the steel plant was set up after ‘Visakha Ukku Andhrula Hakku’ agitation.RINL is also establishing a rail axle plant at New Jaipalguri in West Bengal with an investment of Rs.300 crore. The axle plant will have state-of-the-art facility for forging and heat treatment of nearly 50,000 numbers of forged axles per year.The latest – the forged wheel factory – for which a memorandum of understanding was signed recently in Delhi – is aimed at producing one lakh special grade wheels a year by transporting 500 dia continuous cast rounds from Visakhapatnam.“There is no need for RINL management to set up ancillary units and invest heavily in UP and West Bengal due to political pressure when several project-displaced people are yet to get jobs here,” said Padi Thrinadha Rao, honorary president of Visakha Steel Employees’ Union.He asked the management to cancel the MoUs signed with the railways for establishing the two units as the investment outside AP would be detrimental to the interest of the company.CPI (M) district secretary Ch. Narsinga Rao, who is honorary president of VSP’s recognised union, threatened to launch an agitation if the MoUs were not scrapped.He said more than 25,000 acres was acquired for setting up VSP and a large extent of land was still not utilised. There was no need to make investment in factories in UP and West Bengal under political pressure, he said.

RINL management yielding to political pressure, allege union leaders

CPI(M) leader threatens to launch stir if MoUs are not scrapped