Ranchi, Aug. 10: With Mittal Steel and Jindal South West Steel (JSWS) appointing two former executives of SAIL, industry sources apprehend a minor exodus of personnel from existing steel companies.

It is of course significant that both Sanak Mishra, who joined as the chief executive officer of L.N. Mittal’s Indian enterprise, and R.P. Singh, who has just taken over as the CEO of JSWS, took up their assignment in the private sector after retiring from SAIL. Industry watchers also find it significant that the new entrants have not so far succeeded in enticing senior personnel from Tata Steel.

While Sanak Mishra retired as managing director of the Rourkela Steel Plant and joined the Mittal team in January, Singh retired from Bhilai Steel Plant as MD in June. Singh, who has had a long stint in Bokaro Steel as well, took over as the CEO of JSWS project this month.

At the junior and middle levels, however, hundreds of SAIL executives have been recruited by the private sector steel plants in the past. Many of them are actually posted to Mittal Steel’s plants in other countries.

They are not only drawn by higher salary but also by the offer to pay living allowances to them abroad while crediting their salary in India, which takes care of the family.

With the expansion of the steel sector, observers expect the demand for steel experts to soar in the near future. If and when the proposed plants of Posco, Tata Steel, Mittal and Jindals do take off, there is likely to be a mad scramble for hiring executives in the steel sector.

Observers point out that there are several players in the private sector too, like Essar, Ispat group and the now shut-down Kudremukh steel plant, which might find it difficult to retain skilled staff.

But observers also point out that both SAIL and Tata Steel provide fringe benefits and intangible perks which often outweigh a higher pay packet.

The townships, housing, schools, transport service and clubs developed by both SAIL and Tata Steel will be difficult to emulate, they feel. What’s more, the existing steel companies have already started efforts to retain valued executives and prepare contingency plans to replace people who might leave.

“Experienced people will naturally come from the existing steel industry,” exclaimed a steel executive, who pointed out that private mobile service providers too initially drew personnel from BSNL. Private sector insurance companies too absorbed staff from public sector companies.

Similar movement was witnessed in the banking sector too when it was opened up. The expected movement in the steel sector, therefore, is hardly surprising.