Sale of profit-making FSNL to Japanese company anti-national: CITU

Left-leaning Centre of Indian Trade Unions (CITU) has questioned the Union government’s decision to sell public sector firm Ferro Scrap Nigam Limited (FSNL) to a Japanese corporation. A subsidiary of MSTC Limited, the FSNL had recently made a disclosure that its 100% equity shares has been transferred to Konoike Transport Co. Ltd based on a purchase agreement signed on October 24, 2024.

Denouncing the sale, CITU general secretary and former MP Tapan Sen said the move for privatising FSNL has been going on for a decade and protests by the workers stopped it so far. He said the unions in FSNL have objected to the decision to sell the company. The unions had also urged the Centre to desist from such an “anti-national move”, through a letter to the Union Steel Ministry.

He said when asked about the future of the workers, the Ministry washed its hands off and the services of employees would be governed by the relevant clauses of the share purchase agreement signed between MSTC Limited and Konoike Transport. “The so-called relevant clause in the share purchase agreement specifically states that the company shall not remove or retrench any part of the employee for a period of one year from the closing date. Not only that through such a share purchase agreement, the government has paved the way for privatising the entire scrap handling business of the country exclusively to private players,” Mr. Sen said.

He said the FSNL has a reserve fund of about ₹200 crore, movable assets worth ₹100 crore and employs more than 600 employees along with 5,000 contract workers. The company also gave a dividend of ₹7 to ₹9.5 per share of ₹10 to the government every year and the sale was carried out in a clandestine fashion.

“The CITU vehemently condemns the activity of the government and calls upon all sections of the working class to rise in rage and united condemnation of such an anti-national activity of the government, which has to be combated through counter offensive of demanding stoppage of selling out such a golden egg producing company to a private entity because of its sheer obsession for privatisation and obedience to private corporates’ interest,” he said.