Sambalpur: Bhushan Steel and Power Limited in Crisis; Future Uncertain for Thousands of Employees

Sambalpur: The future of employees at Bhushan Steel and Power Limited (BSPL), located in Rengali, Sambalpur district, is once again uncertain. Thousands of workers and their families are living in fear, worried that the factory may shut down and they might lose their only source of livelihood.

Long History of Struggles and Protests

BSPL has witnessed many ups and downs since its establishment. Initially, the factory faced strong protests from local villagers during its setup. People lost agricultural land and forest areas for the project. Moreover, the company had to face public opposition due to several issues including land disputes, environmental damage, and pollution.

Eventually, although the plant became operational, a major fire incident caused severe damage. Additionally, the Odisha State Pollution Control Board had to shut down many units of the plant due to increasing pollution in the area.

Mismanagement and Financial Crisis

Despite running the plant, the company struggled due to the negligence of certain officials and poor management. Over time, BSPL neared bankruptcy. Many employees were laid off during this period.

In 2016, a bank took over the plant’s operations and managed it for about four years. Then, following the legal process, JSW Steel acquired BSPL in 2021. The company started making efforts to revive the plant and improve working conditions, which gave hope to the employees.

Supreme Court Declares Takeover Illegal

However, the situation changed again when, on May 2, 2024, the Supreme Court passed a verdict stating that the takeover of BSPL by JSW Steel had legal flaws. The court declared the acquisition illegal and ordered that the company should be liquidated, meaning all its assets will be sold off and operations shut down.

Workers in Shock and Fear

Following the court’s decision, panic has spread among the employees. Thousands of permanent and contractual workers are now worried about their future. Many people who indirectly depend on the plant for income are also in distress. They fear they will be left without any means to support their families if the plant shuts down.

Appeals to Leaders for Help

In desperation, the workers have written letters to the President of India, the Prime Minister, and the Chief Minister of Odisha, seeking urgent action to save their jobs and the factory.

A Pattern of Industrial Decline

Once known as an industrial hub, the Hirakud region has already seen many factories shut down due to various issues. When a plant closes, it affects not only the employees but also the entire local economy. People in the region now fear that if BSPL shuts down, the same fate awaits thousands more.