OHC union opposes privatisation

Highlights

OHC Union Opposes Privatisation, Ore Handling Complex, Private-Public Participation. Alleging that the government has violated even the Central Cabinet’s guidelines in making the agreement, Mr Padmanabha Raju said the guidelines clearly stated that either ‘side by side’ berths or the same cargo should not be handled by a single operator.

Demands cancellation of ‘secret’ agreement with Essar demanded

Visakhapatnam: United Port and Dock Employees’ Union (CITU) vehemently opposed the handing over of the profit-oriented Ore Handling Complex (OHC) of Visakhapatnam Port to Essar Company in the guise of modernisation and demanded the Central government to cancel the ‘secret’ agreement reached in this regard.

Talking to reporters here on Sunday, union general secretary VS Padmanabha Raju said that the Central government had entered into an agreement with Essar ‘secretly’ in Chennai on December 13 to hand over the operation of OHC under the Private-Public Participation (PPP) mode. Pointing out that the OHC was instrumental in securing a lion’s share of profits to the Port, he said as trade union leaders, they believed that there was a big scam worth crores of rupees behind this agreement. Condemning the agreement as undemocratic and illegal, Mr Padmanabha Raju demanded the government to cancel it immediately.

The general secretary alleged that the government was further misleading the public and the workmen by claiming that the capacity of the OHC would be increased to 23 million tonnes from its original capacity of 12.5 million tonnes per annum with private participation. He said the OHC had already been working with a capacity ranging from 16 million tonnes to 19 million tonnes per annum and Essar need not invest anything for the modernisation.

“Though the total value of the OHC was about Rs 1,000 crore, the government has fixed its upfront value at Rs 300 crore initially, which was reduced to Rs 185 crore at the time of calling tenders. Thus, it has hatched a big plot to hand over the OHC to the private party at a throwaway price,” he alleged.

He recalled that the Central government had earlier agreed to modernise the OHC with the financial help of Japan International Cooperative Agency and later decided to construct WQ-7 and WQ-8 berths with a cost of Rs 393 crore from the Port’s own funds by changing its original stand. Even the Port Trust Board had sent its resolution to invest its own funds for modernisation of the OHC to the government. “Setting aside its original proposals and the Board resolution, the government has now decided to hand over the OHC to a private company by violating the norms,” he said.

Alleging that the government has violated even the Central Cabinet’s guidelines in making the agreement, Mr Padmanabha Raju said the guidelines clearly stated that either ‘side by side’ berths or the same cargo should not be handled by a single operator. In the guise of modernisation, the monopoly of iron ore handling would go to the control of Essar. He also charged that the AITUC and HMS leaders, who were nominated as labour trustees in the Port Trust Board, had failed to oppose the government’s decision. An action plan would be chalked out shortly after discussing with all other trade union leaders to protect the OHC, he added.

Union president KS Kumar was present at the press conference.

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