Mounting losses and the ongoing slump in the steel industry has pushed Bokaro Steel into taking a decision it has long avoided: shut down all 21 schools it runs in the steel town and hand over the campuses to private firms.

A proposal to this effect has been sent to Steel Authority of India (SAIL), and Bokaro Steel hopes it will be cleared since sister concern Bhilai Steel Plant, which had sought to take similar measures, was allowed to do so by the SAIL board.

Of the 46 schools which Bokaro Steel used to run for employees numbering 43,000 in the '90s, 25 were shut down as of March 31, 2016.

Now, sources said, the PSU wants to hand over the remaining 21 school buildings to private enterprises to run educational institutions, like a hotel management school, a technical or BEd college, etc.

The school buildings would be leased out to private enterprises for 11 years in exchange for a fee.

As of the 270 teachers who are employed in the 21 schools that BSL is running, they would be absorbed in various departments of the PSU.

The decision to shut down schools and lease out the buildings was prompted by BSL's mounting losses since the last 12 years. The total monthly salary bill for the teachers of the 21 schools is more than Rs 2 crore.

However, only 2,340 students are studying in these schools which generate around Rs 56,000 as monthly fees paid by the students.

"Bhilai steel plant has got approval from the SAIL board to hand over several school buildings to private parties. But, BSL has yet not got the approval," said Sanjay Tewary, chief of communications of Bokaro steel plant.

He said Bokaro Steel had put out advertisements for letting out a few school buildings to private parties in 2011. But, the board turned down the proposal.

"Several Bokaro Steel school buildings are in bad shape, while the number of students are going down every year. So new initiatives are being thought of for generating revenue," Tewary said, adding that no teacher would be retrenched.