Covid-19 Threat Forces JSW Steel To Reduce Workforce At Karnataka Plant

After 70 per cent of the Covid-19 positive cases in Bellari district of Karnataka were reported from the JSW Steel plant, the steel producer has tightened measures to combat the spread by restricting entry of migrant labour at its plant.

“We are not allowing nearly 11,000 migrant labour coming from nearby villages to work at the plant and instead will continue operations with the remaining 17,000-18,000 workers present at our four colonies and at the plant site,” Vinod Nowal, deputy managing director at JSW Steel Ltd, told Business Standard on Friday.

The company is following the restrictions or standard operating practices outlined by the district administration, he said.

Early this week, local residents had alleged that the JSW Steel factory was a Covid-19 hub after there was an increase in the number of employees testing positive for the virus.

“In the last one month, of the 256 positive Covid-19 cases at the plant, 91 workers have been discharged already and the remaining are not showing symptoms anymore,” said Nowal.

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JSW Steel has a 12 million tonne capacity steel plant at Toranagallu village in the Ballari-Hospete iron ore belt spread over 10,000 acres. Currently, the plant is running at 85-90 per capacity utilisation.

“Workers deployed at the facility are not being allowed to move out of the demarked area and it is being ensured that the staff is provided with whatever needed at the facility itself,” explained Nowal.

According to reports, about 509 Covid-19 cases have been reported from the district, with 296 from the JSW Steel plant.

"Migrant labour has been asked to stay home and are on paid leave since June 12. As the number of Covid-19 cases comes down, we will review the situation and then take a decision on allowing these workers to return to work. Accordingly, number of shifts has been brought down to two from three in a few departments. The company is planning some reward for employees at the facility, depending on their performance, but that is in works and as a result we cannot give any details," said Nowal.

JSW Steel is not the only manufacturing facility, which was affected by the spread of Covid-19.

Bajaj Auto had to suspend operations at Aurangabad unit today after 75 were reportedly tested positive for Covid-19. It had in March suspended operations at its corporate office and production facility at Chakan near Pune and maintained skeletal staffing for essential services at the facility.

Among steel producers, at state-owned Steel Authority of India (SAIL), nearly 40 senior and mid-level officials including the chairman working out of the Delhi-based corporate headquarters, are reported to have tested positive for Covid-19.

The company in its recent release had stated that its director (personnel) Atul Srivastava had passed away at Delhi’s Apollo hospital due to “cardiac arrest”.

“Srivastava, diagnosed coronavirus negative, was running fever of 101+ for the last few days. Earlier in the day on June 10, when he was experiencing difficulty in breathing, he was advised admission in a hospital,” the company had said in a note.

State-run Oil and Natural Gas Corporation (ONGC) had last week temporarily ceased operations at two drilling rigs on the western coast, owing to the death of an employee and another 54 testing positive for Covid 19. The two rigs were placed in two of the most lucrative assets of the company – Mumbai High and Bassein.

A company official said the work was stopped temporarily only at two rigs and remaining 34 rigs in the offshore were operational. He added there was no impact on the company’s production.