SAIL, at the instance of Govt of India, has appointed M/s Mckinsey to prepare a blueprint of cost-cutting measures for the crisis-ridden public sector steel industry. The crisis in Indian steel industry emanates out of faulty economic policy of liberalisation leading to widespread recession in the economy and indiscriminate dumping of imported steel in Indian market marginalising the Indian steel producers. But, the foreign consultant M/s Mckinsey has proposed selling out of captive power plants with the SAIL, hiving off Alloy Steel Plant, Salem Steel Plant, IISCO and many more departments in other steel plants, reduction of at least 75,000 workforce by VRS etc, route and closing down of some departmental stockyards. In other words the foreign Consultant Company relied upon by the BJP Govt, has proposed in the name of solving of the present crisis, such disastrous measures by way of gradual self-liquidation of the steel industry.

Steel workers are determined to oppose such measures. The workers of the Rourkela Steel Plant, under the leadership of CITU, earlier blocked the entry of a prospective customer of the power plant of Rourkela in the steel township through massive demonstrations. On May 7 as well, when representatives of M/s Mckensey were scheduled to visit Rourkela Steel Plant, CITU organised a massive demonstration and did not allow Mckinsey-men to detrain at Rourkela station itself.