<p>It’s virtually no work at the Visvesvaraya Iron and Steel Limited (VISL), the city’s flagship factory that has provided employment to thousands of people. <br /><br /></p>.<p>The steel company is facing a severe financial crisis, thanks to the recession in the world market for steel and has, therefore, decided to suspend production for the next couple of months. The demand for the commodity has come down with frequent fluctuations in the market price and production cost. <br /><br />Work is suspended at the forge unit at VISL, which manufactures products for Railways, also. The machinery in the unit have developed defects and experts from Australia are scheduled to arrive to repair the machinery.<br /><br />The Steel Authority of India Limited (SAIL), under which VISL comes, is also facing a deep crisis, due to the ups and downs in the market. The problems in SAIL have had a cascading effect on VISL. <br /><br />With the factory suspending production, VISL is now focusing on disposing of the stocks amounting to 35,000 tonnes to 40,000 tonnes, which are estimated to cost Rs 350 crore to Rs 400 crore. <br /><br />The crisis in the factory would not cause any problems to permanent employees, J N Chandrahas, president of the VISL employees’ union told Deccan Herald. In a goodwill gesture, the VISL management has decided to provide work for 15 to 20 days to contract employees, he said. This is the first time that contract employees will have work when production is suspended.<br /><br />The VISL is making efforts to get captive mines, and till that is done, there is no likelihood of SAIL making more investments in the factory. So, as the summer heat and the poll fever rise, it’s just the opposite at VISL. The blast furnace has cooled down.</p>
<p>It’s virtually no work at the Visvesvaraya Iron and Steel Limited (VISL), the city’s flagship factory that has provided employment to thousands of people. <br /><br /></p>.<p>The steel company is facing a severe financial crisis, thanks to the recession in the world market for steel and has, therefore, decided to suspend production for the next couple of months. The demand for the commodity has come down with frequent fluctuations in the market price and production cost. <br /><br />Work is suspended at the forge unit at VISL, which manufactures products for Railways, also. The machinery in the unit have developed defects and experts from Australia are scheduled to arrive to repair the machinery.<br /><br />The Steel Authority of India Limited (SAIL), under which VISL comes, is also facing a deep crisis, due to the ups and downs in the market. The problems in SAIL have had a cascading effect on VISL. <br /><br />With the factory suspending production, VISL is now focusing on disposing of the stocks amounting to 35,000 tonnes to 40,000 tonnes, which are estimated to cost Rs 350 crore to Rs 400 crore. <br /><br />The crisis in the factory would not cause any problems to permanent employees, J N Chandrahas, president of the VISL employees’ union told Deccan Herald. In a goodwill gesture, the VISL management has decided to provide work for 15 to 20 days to contract employees, he said. This is the first time that contract employees will have work when production is suspended.<br /><br />The VISL is making efforts to get captive mines, and till that is done, there is no likelihood of SAIL making more investments in the factory. So, as the summer heat and the poll fever rise, it’s just the opposite at VISL. The blast furnace has cooled down.</p>
