Sale of profit-making FSNL to Japanese firm anti-national: CITU

Tapan Sen, former MP and CITU normal secretary.
| Picture Credit score: RAO GN

Left-leaning Centre of Indian Commerce Unions (CITU) has questioned the Union authorities’s determination to promote public sector agency Ferro Scrap Nigam Restricted (FSNL) to a Japanese company. A subsidiary of MSTC Restricted, the FSNL had not too long ago made a disclosure that its 100% fairness shares has been transferred to Konoike Transport Co. Ltd based mostly on a purchase order settlement signed on October 24, 2024.

Denouncing the sale, CITU normal secretary and former MP Tapan Sen mentioned the transfer for privatising FSNL has been happening for a decade and protests by the employees stopped it to this point. He mentioned the unions in FSNL have objected to the choice to promote the corporate. The unions had additionally urged the Centre to desist from such an “anti-national transfer”, by means of a letter to the Union Metal Ministry.

He mentioned when requested about the way forward for the employees, the Ministry washed its arms off and the companies of staff can be ruled by the related clauses of the share buy settlement signed between MSTC Restricted and Konoike Transport. “The so-called related clause within the share buy settlement particularly states that the corporate shall not take away or retrench any a part of the worker for a interval of 1 yr from the time limit. Not solely that by means of such a share buy settlement, the federal government has paved the way in which for privatising the whole scrap dealing with enterprise of the nation completely to non-public gamers,” Mr. Sen mentioned.

He mentioned the FSNL has a reserve fund of about ₹200 crore, movable belongings price ₹100 crore and employs greater than 600 staff together with 5,000 contract employees. The corporate additionally gave a dividend of ₹7 to ₹9.5 per share of ₹10 to the federal government yearly and the sale was carried out in a clandestine trend.

“The CITU vehemently condemns the exercise of the federal government and calls upon all sections of the working class to rise in rage and united condemnation of such an anti-national exercise of the federal government, which must be combated by means of counter offensive of demanding stoppage of promoting out such a golden egg producing firm to a personal entity due to its sheer obsession for privatisation and obedience to non-public corporates’ curiosity,” he mentioned.