Steel Authority of India is set to "dissolve" its raw material division headquarters in Kolkata, sources said on Saturday, a decision that would deal a blow to contractual employees associated with the unit.
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.