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Striking employees allow maintenance of Balco plant

Striking employees at the newly privatised Balco aluminium plant agreed on Thursday to a management appeal to maintain the smelter and other essential services, police said.

"The trade unions have sent some employees inside in batches. They have agreed to maintain the smelter but without accepting any wages," said S P Kalluri, police superintendent in Korba in Chhattisgarh where the plant is located.

The strike by more than 4,000 workers was launched last Saturday to protest against the government's sale of its 51 percent stake in Bharat Aluminium Co Ltd to metals firm Sterlite Industries.

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

Balco management had said earlier the situation at the plant was becoming serious with a shortage of labourers hurting maintenance. 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 police superintendent said that the district administration was complying with a Supreme Court order late on Thursday to protect employees wishing to report for work.

Positive ruling

Balco's new managing director, S C Krishnan, said the court ruling which had been sought by the federal government would help improve the confidence of the workers at the Korba plant 280 km from the state capital.

"This is a very positive signal for the people of Korba... Together we can work in making Balco a world-class aluminium company," Krishnan said.

Opposition lawmakers, meanwhile, kept up their attack on the government in parliament over Balco's privatisation.

They said the government's move to seek a Supreme Court ruling would sour its relations with the newly created Chhattisgarh state which opposes Balco's privatisation.

"You're bringing in the courts in your sinister divestment policy. There are in-built mechanisms to solve Centre-state disputes," communist lawmaker Somnath Chatterjee said.

Divestment Minister Arun Shourie defended the government's action and said the decision to approach the Supreme Court was taken after reports of possible serious damage to the plant and harm to employees.

Chhattisgarh Chief Minister Ajit Jogi, who is supporting the striking employees, has demanded that Balco be returned to state hands.

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.

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