Mail News Service
Jamshedpur, Feb 7: Amid an ongoing dispute between Bihar Sponge Iron Limited (BSIL), Chandil, and its operating partner Vanraj Steel Private Limited, the company has been completely shut down, with BSIL now publicly detailing the internal reasons behind the closure.
In a statement issued on Saturday, BSIL Senior General Manager R.K. Sharma alleged that Vanraj Steel Private Limited (Adhunik Group) has accumulated outstanding dues of nearly Rs 55 crore under various heads payable to Bihar Sponge Iron.
Sharma said that in January 2021, BSIL had undertaken extensive repair and refurbishment of the plant through an agency nominated by Vanraj Steel.
As per the agreement, major facilities including all three kilns, the Electrostatic Precipitator (ESP), power plant, Raw Material Processing (RMP) unit and railway siding were comprehensively overhauled.
BSIL reportedly spent around Rs 60 crore on maintenance and repairs, following which the plant was handed over to Vanraj on January 7, 2022 after third-party verification.
However, Sharma alleged that during operations, Vanraj Steel failed to carry out routine maintenance, leading to severe deterioration of plant machinery.
He further claimed that the ESP, a critical pollution control system, was neither properly operated nor maintained.
BSIL later released an additional Rs 70 lakh to Vanraj specifically to control emissions from the plant, but compliance remained inadequate, he said.
The statement also accused Vanraj Steel of failing to pay water bills regularly since January 2022, prompting action by the water department.
Outstanding water dues alone are estimated at around Rs 9 crore.
According to the detailed breakup shared by BSIL, the total outstanding amount of nearly Rs 55 crore includes electricity dues of Rs 1.5 crore, water charges of Rs 8 crore, creditor liabilities of Rs 24 crore, rent of Rs 4 crore, GST dues of Rs 3.5 crore, railway charges of Rs 1 crore, maintenance costs for kilns, roads and other facilities ranging between Rs 12–15 crore, and store-related dues of about Rs 1 crore.
Sharma further alleged that on February 5, this year Vanraj Steel abruptly shut down the plant without informing BSIL management or issuing any notice to employees or contractors.
As a result, payments amounting to several crores of rupees to company employees and local contractors remain pending, adding to the crisis surrounding the closure.
