Mail News Service
Jamshedpur, Feb 6: Operations at Bihar Sponge Iron Limited were brought to a complete halt today after its principal contractor, Vanraj Steels Private Limited, announced a total suspension of work, citing prolonged neglect of critical issues including pollution control, water supply dues running into crores, and failure to establish a captive power plant.
Confirming the development, Mukesh Barelia, Commercial Head of Vanraj Steels, said the decision was taken after repeated concerns went unaddressed by Bihar Sponge Iron Limited.
He stated that the situation had become untenable for the contractor to continue operations under the prevailing conditions.
Barelia detailed that Rs 6 crore is currently lying with Bihar Sponge Iron Limited as security deposit, while an additional Rs 3.50 crore has been deposited by the company with the electricity department as electricity security.
He further informed that Vanraj Steels has incurred capital expenditure of Rs 12 crore for the plant under Bihar Sponge Iron’s scope.
In addition, raw materials, by-products and finished goods worth Rs 8 crore remain inside the premises of Bihar Sponge Iron Limited.
Pending TDS dues amount to Rs 1 crore, while store items belonging to Vanraj Steels worth Rs 4.50 crore are also lying within the plant. Altogether, a sum of approximately Rs 35 crore belonging to Vanraj Steels Private Limited is currently tied up with Bihar Sponge Iron Limited.
Barelia categorically stated that Vanraj Steels would resume plant operations only after Bihar Sponge Iron Limited ensures proper pollution control measures, clears water-related issues, and puts an effective captive power plant system in place.
The suspension of work is expected to have a significant impact on production and employment at the unit, even as industry circles await a response from Bihar Sponge Iron Limited on the matter.
