An official announcement to this effect, however, is yet to be made.
"The company's board has decided to dissolve the RMD and transfer control of its mines to Rourkela Steel Plant (Odisha) and Bokaro Steel Plant (Jharkhand) depending on their location," sources told PTI.
SAIL's mines located in Odisha would come under the administrative control of RSP, and the ones in Jharkhand will be under the jurisdiction of BSP.
RSP would get control of the Bolani, Kalta, Taldihi and Barsuan iron ore mines in Sundargarh and Keonjhar districts of Odisha, while the BSP would manage the Chiria, Megatburu, Kiruburu, Gua, Bhavnathpur and Kuteswar mines in Jharkhand, they said.
The non-contractual employees at the RMD headquarters in Kolkata would be shifted to Rourkela and Bokaro, the sources said, adding, the axe could fall on the contractual workers.
The steel major is likely to save around Rs 40 crore a year courtesy of the move, they said.
A section of the contractual employees of the division had approached SAIL Chairman Soma Mondal to reconsider the decision, and also sought West Bengal Chief Minister Mamata Banerjee's intervention.
It also apprehends disruption in raw material supply to Durgapur and Burnpur Steel Plants in the state when the RMD ceases to exist here.
A local group named 'Bangla Pokkho' had recently protested against the proposed step, calling it an anti-Bengal measure.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.