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CIMA Gallary

Rs 200-crore blow to Adityapur units

Production activities at 900 small and medium units in the Adityapur industrial area and also Chandil in Seraikela-Kharsawan district came to a complete halt from Wednesday night, as striking JSEB employees robbed them of their power lifeline.

The Adityapur Small Industries Association (ASIA) pegged the cumulative loss of these units — mostly ancillaries of Tata Motors Limited — at around Rs 200 crore. “The vendors were already bearing the brunt of a slump in the steel and automobile sectors. Now, the strike will only aggravate their crisis,” said R.K. Sinha, the president of ASIA.

According to Sinha, the biggest concern for the units is that if the strike continues, Tata Motors may purchase components from its ancillaries in Pune and Lucknow. “This will multiply the losses that local vendors are already suffering,” he said.

The ASIA boss claimed that he had spoken to JSEB chairman S.N. Verma, who had assured him that steps were being taken to overcome the crisis. “If power supply is not restored by tomorrow (Friday), I will speak to the state energy secretary, highlighting the plight of industries in Adityapur,” Sinha said.

Security remains the second area of concern for units in the absence of streetlights and lamps on factory premises.

A.K. Bihany, a senior member of the Singhbhum Chamber of Commerce and Industry and the director of an industrial unit in Seraikela-Kharsawan, pointed out that precautionary measures could not be taken because of the flash strike. “It was complete blackout in the industrial area last (Wednesday) night. The units have been unable to meet production schedules. The situation is both insecure and uncertain,” he said.

Sinha said they had convened a meeting of industrial unit owners on Thursday evening to discuss the issue.

Notably, ancillary units of Adityapur are together the largest manufactures of components for trucks, trailers and other multi-axle vehicles produced by the Jamshedpur plant of Tata Motors.