​This Indian manufacturing giant will axe over 1000 jobs soon

A ‘Steep fall’ in the price of metal is resulting in 1,000 people losing their jobs in Chattisgarh. Balco, part of Anil Agarwal-led Vedanta Ltd, today said it has started the procedure to shut down its rolling business in Chhattisgarh - a move that will see 1,000 people losing jobs.

A month back, the aluminium manufacturer had announced its decision to shut down the rolling mill in Korba (Chhattisgarh). The fall in prices of metal and dumping from China have contributed to this dead lock.

"Balco has begun the official procedure to close down its Sheet Rolling Division and Foundry at Korba. The company has issued the information to the Secretary, Labour Ministry, Government of Chhattisgarh as well as the BSE and NSE," the company said in a press statement.

Mining conglomerate Vedanta Ltd holds 51 % stake in Bharat Aluminium Company (Balco), while the remaining is held by the government.

It produces about 30,000 tonnes per annum of rolled products like aluminium sheets and coils.

Balco has sought permission from the central government to close the unit by December 8, 2015. The closure will be as per the provisions laid down in The Industrial Disputes Act, 1947, it added.

On reasons behind the shutdown, Balco CEO Ramesh Nair said, "The closure of the rolling mill is in the backdrop of a crash in global aluminium prices and the prohibitive cost of coal to run our power plants.

"To operate at peak capacity, Balco requires 30,000 tonnes of coal. While the coal auctions have benefited the company in terms of allocation, the new block will meet only 10 per cent of the peak capacity," Nair said.


Due to non-availability of bauxite and coal, the two basic raw material used in the aluminium and power complex, Balco is now sitting on idle capacity. According to the statement, the company's current coal requirement of 15,000 tonnes to operate its power plants is being met partly by auctioned coal and partly by imports.