In a letter to Shri Arvind Pande, chairman, SAIL on November 20, CITU general secretary, M.K. Pandhe has said, "This is not going to solve any of the problems being faced by SAIL and SSP in particular the root of which lies elsewhere. Rather, the particular move is a dangerous one for Alloy Steel Plant, Durgapur(ASP), because, since inception of SSP, ASP and SSP were being operated as complementary units. If SSP is privatised, then ASP will collapse because it has no other outlet for its flat/slab products. And the whole move appears to be on the line of the Mckinsey Report prescribing dismantling and demolition of SAIL which, inter alia, recommended privatisation of SSP and closing down of ASP.

M K Pandhe also recalled the SAIL chairman’s public statement in Durgapur that SAIL had not accepted the Mckinsey Report. But from the actions being taken, it is obvious that SAIL is moving on the same line which cannot be accepted by the steel workers lying down, Pandhe asserted.

Pandhe further pointed to the SAIL chairman’s assurance on 2nd September last, in the joint meeting with unions of ASP, to extend full cooperation to see that the ASP-Salem route becomes viable and competitive. He argued that ASP has got huge capacity to make stainless steel and some minor investment towards technological upgradition and installation of facilities like electro-magnetic stirrer etc. would solve the quality problems. And in view of many strategic advantages like low power cost, proximity of raw material sources, highly skilled manpower and huge existing melting and casting facilities, the ASP-SSP combine under SAIL can meet the country’s total need of stainless steel, that too most economically. But instead of taking such positive steps, which would benefit both SSP and ASP and strengthen SAIL, what is being done is to privatise SSP and through that, step towards closing down ASP.