Rap artist

The Ganesan Committee on iron ore pricing and distribution has put Shashi Ruia, among others, on the defensive having rapped his steel company for failing to lift its quota of iron ore fines that the company had been allotted under its agreement with National Mineral Development Corporation. The panel has been particularly critical of the fact that the Ruias and some others have been able to use, on an average, only 48 per cent of their annual allotments. The panel’s recommendations like reducing entitlements and charging spot rates by NMDC on ore fines until the company starts lifting the agreed amount have naturally left the tycoon fuming.

Even though the panel’s decision had for some moments put Ruia on the back foot, he is not one to accept bureaucratic dictates lying down. He has countered the charges with his own set of arguments. He maintains that NMDC fails to make available the required quantity of fines. So the charge of not lifting one’s entitlement on time does not exist. He also points to the fact that slump in the steel market had greatly affected demand for iron ore for a few years. Under those circumstances lifting of fines may have been affected. He has charged the panel for unfairly targeting his company when there exists a rather long list of defaulters.

Ruia is clearly undeterred by the NMDC’s decision and is now frequently closeted with his strategists to improve their performance with regard fines.

Local problem

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Mukesh Ambani’s managers at his Jamnagar Refinery usually in control of their environment were for once caught by surprise when casual workers engaged in the expansion project and residents of the nearby village clashed over a minor water dispute. The clashes, which left 15 injured, clearly is a warning bell for the senior Ambani who is presently doubling his Jamnagar capacity to 60 million tones.

Mukesh’s smart executives may have sidestepped the crisis in the inimitable and vintage Dhirubhai way by declaring a day off and giving a day’s paid leave to the workers, but the problem of the huge influx of casual labourers into the area in search of work at the refinery sites could be a ticking time bomb. The number of workers engaged in the expansion project is likely to go up to 30,000 soon when work starts post monsoons in full swing. The tycoon has to find a way to avoid any such situation in future.

dilipcherian@hotmail.com