Kulti works of SAIL, resurrected as Growth Works in 2007-08, is alive and kicking.

The oldest smokestack unit, established in 1874 by British India in its “coal country,” West Bengal, went out of business in 2003. Today it is feeding SAIL's integrated plants with ferrous and non-ferrous castings and machinery items in its way to modernisation.

The unit with 14 executives and 460 contract workers produced business worth around Rs 50 crore during 2011-12, Mr T.K. Das, Executive Director, told Business Line . Since 2007-08, SAIL has invested around Rs 20 crore in Growth Works on revamping some old operations and providing working capital.

According to insiders, the unit, in turn, kept capital costs under control and reduced cash outflow.

Legacy issues

The operational viability and growth opportunity of Growth Works, however, remain clouded for several unsorted legacy issues.

The unit for the past seven years has been carrying the legacy burden of health insurance premiums of retired Kulti workers to the tune of around Rs 4.5 crore a year. It pays power and water bills of over 1,800 still “occupied” staff residential quarters of about Rs 4 crore a year, according to the unit management.

The unit also bears the cost of protecting a sprawling complex of around 850 acres by CISF at Rs 3 crore a year.

The State Government also is unrelenting on lease rent claim on the land, a large part of which is unutilised.

Land use

SAIL is facing land use hurdles in its proposal for housing a wagon unit, inside complex, as a joint venture with RITES.

“The total land area of Kulti unit, including the housing colony, is around 1,000 acres. It needs a holistic plan for hosting other ventures and a positive role of the State Government for generating fresh employment as well as productive land use,” said a SAIL insider.

>jayanta_mallick@thehindu.co.in

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