Top

Alleged irregularities in Steel sales : VSP union demands CBI probe

Alleged irregularities in Steel sales : VSP union demands CBI probe
Highlights

Visakhapatnam: The Steel Progressive Employees' Union (CITU) has demanded a CBI probe into the irregularities in the steel sales of Rashtriya Ispat...

Visakhapatnam: The Steel Progressive Employees' Union (CITU) has demanded a CBI probe into the irregularities in the steel sales of Rashtriya Ispat Nigam Limited-Visakhapatnam Steel Plant (RINL-VSP) in March 2013 and to initiate action against the culprits.

The union representatives alleged that the steel plant, which produced lakhs of tonnes of steel material worth crores of rupees, sold the same to the dealers and organisations under unsecured credit by reducing its cost unilaterally ranging from Rs 4,000 to Rs 7,000 per tonne.

Talking to reporters here on Tuesday, union president N Rama Rao alleged that Director (Commercial) TK Chand had done all these credit sale transactions without taking other directors into confidence and hence they were of the opinion that there was corruption to the tune of crores of rupees. "Moreover, there was an abnormal delay in fixing the steel rate wantonly till March third week this year only to help the dealers get more profit," he added.

Mr Rama Rao charged that the company has given unsecured credits worth Rs 210 crore to 26 dealers, including AKC Steel Industries Limited, AS Steel Traders, Aditya Steel Rolling Mills Private Limited, AR Steels, AS Steel Traders (VSP) Private Limited and Abhinav Traders.

Union general secretary Simhachalam said they have already questioned Mr Chand with regard to the irregularities in the steel sales at a meeting held on May 6, but the officials failed to give a clarification. Earlier, L&T was the only dealer to get unsecured credit on sales of steel material as it was the regular work contractor of the steel plant, he said. During 2011-12, steel sales amounted to Rs 14,600 crore, which came down to Rs 1,000 crore during 2012-13 and the sale irregularities would have a direct impact on the financial matters of the plant, he stated.

Clarifying how the irregularities have a direct impact on financial matters, Mr Simhachalam said the profit of Rs 2,800 crore for the year 2004-05 declined to Rs 750 crore for 2011-12 while the raw material cost and the work cost has increased manifold. "We are submitting a complaint-cum-representation to the CBI authorities on Tuesday demanding a detailed probe and to punish the erring," he added.

Other CITU representatives YT Das, J Ayodhyaram and B Ganga Ram said it was unfortunate that there was no head of the marketing department and hence the zone authorities were allocating the material to the dealers following the instructions of director-level authorities, which resulted in large-scale corruption. They demanded the steel plant management to maintain an integrated marketing plan keeping in mind the interest of the plant and the workers.

Show Full Article
Print Article

Download The Hans India Android App or iOS App for the Latest update on your phone.
Subscribed Failed...
Subscribed Successfully...
Next Story
More Stories