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This is an archive article published on September 11, 2003

Balco unit faces shutdown

Flaunting a Rs 750-crore expansion plan over the past year as a sign of its improved ties with Chief minister Ajit Jogi, the Bharat Aluminiu...

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Flaunting a Rs 750-crore expansion plan over the past year as a sign of its improved ties with Chief minister Ajit Jogi, the Bharat Aluminium Company Limited (Balco) has run into fresh trouble with Chhattisgarh now.

The trouble this time is not related to workers’ unrest, but the supply of bauxite — a key raw material for aluminium manufacture. This has come about since bauxite mines in Sarguja district have remained shut for the last 15 days. Also, over 400 trucks engaged in transporting bauxite have stopped plying.

The district administration accuses Balco of overloading trucks, resulting in huge loss to the exchequer. ‘‘We are working out the exact loss, which could run into several crores over the past some months,’’ said Sarguja SP K. Babu Rao.

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Balco requires about 1,600 to 1,700 tonnes of bauxite daily for the plant to run at full capacity. It was only a few months ago that Balco’s new owner Sterlite was able to put the plant back to its capacity after the 2001 workers’ strike against the PSU’s privatisation. The non-supply of bauxite to the plant has pressed panic buttons for the Balco management now lobbying for Jogi’s intervention — which would mean the return of bad days for the Sterlite group.

‘‘Currently, we are left with only a week’s stock. If the bauxite supply is not resumed within next few days, the plant will eventually face closure. Imagine the extent of national loss in that case?’’ says Balco chief spokesman Deepak Pachhpore.

The district administration is not ready for compromise. ‘‘Trucks which are supposed to load 10 tonnes have been ferrying 18 to 20 tonnes. Apart for tax evasion, its impact on the roads is far more serious. There is public outcry about roads being damaged because of overloaded trucks,’’ alleges the Sarguja SP.

Police have ordered transport companies and Balco to submit all details of the bauxite transportation over the last six months. First, the cases under Motor Vehicle Act will be filed and later the Mining Department will be asked to re-examine records to work out penalties on excess loads.

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‘‘Simultaneously, we will work out criminal culpability of the company officials and transporters,’’ says Rao.

The police is not willing to allow bauxite to be transported until Balco pays the penalty. The company, however, has been pleading for permitting truck movement. ‘‘We are not running way and ready to provide whatever details are required by the police,’’ says the Balco spokesman.

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