Jharkhand feels the steel pinch in slowdown
The global meltdown has hit Jharkhand’s steel sector, with companies putting on hold their projects till market conditions improve.business Updated: Dec 26, 2008 20:59 IST
The global meltdown has hit Jharkhand’s steel sector, with companies putting on hold their projects till market conditions improve. Companies with facilities in Jharkhand — barring Tata Steel — have announced a slew of cost-cutting measures including production cuts and reducing inventory.
Arcelor-Mittal announced it is postponing its two proposed plants. Tata Steel also suspended its Jharkhand and Chhatisgarh projects. The company is, however, putting up a fight.
It recently announced a wage hike for 16,000 employees, it carried out ground breaking ceremony for its blast furnace — towards ramping up the production capacity of Jamshedpur Steel works from 6.8 MT to 10 MT.
SAIL Bokaro Steel Plant (BSL) is said to be likely to reduce its production in Jharkhand.
Small players like Kohinoor Steel, which felt the recession heat, credits the Centre’s revival package for a fresh lease of life. “We had downed production by half, but the revival package has helped us to produce full capacity within a month,” said the company GM, Avinash Duggar.