Steel Authority of India to dissolve RMD headquarters in Kolkata: Report
The contractual employee working for Steel Authority of India (SAIL) could face a hard time as the state-run company is set to dissolve its raw material division (RMD) headquarters in Kolkata, news agency PTI reported on Saturday. However, an official announcement is yet to be made.
PTI quoted some officials to say that the control of the mines under the raw material division could be to Rourkela Steel Plant in Odisha and Bokaro Steel Plant in Jharkhand.
The non-contractual employees at the RMD headquarters in Kolkata would be shifted to Rourkela and Bokaro, PTI reported quoting people aware of the development, adding that the axe could fall on the contractual workers.
The domestic steel major is likely to save around ₹40 crore a year courtesy of the move, PTI report further said.
A section of the contractual employees of the division had approached SAIL Chairman Soma Mondal to reconsider the decision, and also sought West Bengal chief minister Mamata Banerjee's intervention.
Shares of SAIL on Friday rose by five per cent after the company posted a 31 per cent jump in its consolidated net profit for the quarter ended March 31, 2021.
The company had clocked ₹2,647.52 crore net profit during the January-March period of fiscal year 2019-20, Steel Authority of India Ltd (SAIL) said in a regulatory filing.
"The Covid-19 pandemic outbreak and measures to curtail it had caused significant disturbances and slowdown of economic activities, as a result of which the company's operations had to be scaled down during; the first quarter of financial year ended March 31, 2021," the filing said.
The filing further noted that following the gradual normalization of economic activities, the company is operating at normal capacity.
In a separate media statement, SAIL said it produced 4.56 million tonne (MT) during the quarter, up 6 per cent over the year-ago period, while sales jumped 11 per cent to 4.42 MT.