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Haldia port equipment handler quits over safety concerns (Roundup)

West Bengal,Business/Economy,Politics, Wed, 31 Oct 2012 IANS

Kolkata, Oct 31 (IANS) Port equipment operator Haldia Bulk Terminals (HBT) Wednesday quit West Bengal over "poor law and order" and "safety" concerns of its employees, prompting industry experts to raise concern over the state's growth prospects.

"We have decided to pull out from the Haldia Dock Complex," HBT CEO Gurpreet Malhi said in a communication to the Kolkata Port Trust (KoPT) Wednesday.

HBT's decision would complicate the situation at labour unrest-hit HDC, which handles an average 14 million tonnes of dry bulk cargo a year, including critical raw materials for eastern region steel plants.

The government, however, said the industry's confidence in the regime was high and dismissed claims of poor law and order situation.

Kolkata Port Trust Chairman Manish Jain took a tough stand against HBT saying its allegation of poor law and order situation at Haldia was "false, obnoxious and unacceptable" and an excuse to "run away".

"If they try to upset the agreement (with KoPT), then we will have to go for punitive action. According to the punitive action, we cannot allow the machines to go," Jain said.

HBT, a joint venture of ABG Infralogistics and French Louis Dreyfus Armateurs, was operating at mechanised berths two and eight at the complex and handled five million tonnes of cargo per year.

HBT's decision came a day after Chief Minister Mamata Banerjee dubbed the Haldia Dock imbroglio as "exaggerated".

"For us, safety and security of our employees is of paramount importance," Malhi said, referring to the abduction of three officers of the company by a mob Sunday.

The state government and the police have termed the abduction as "cooked-up".

Talking to reporters, Malhi said: "We cannot work in an environment where the authorities responsible for ensuring the law and order have openly abandoned their responsibility.

"And we have been writing to the Kolkata Port Trust, as they are the principal employers, but no action has been forthcoming from it and the district administration."

The deadlock at KoPT's Haldia Dock Complex over HBT's operations has been continuing since the company retrenched 275 people in September.

Following the unrest, HBT stopped operations, resulting in KoPT moving the Calcutta High Court for permission to terminate its agreement with HBT.

The Congress and Communist Party of India-Marxist (CPI-M) attacked the Trinamool Congress-led government for "vitiating" the industrial environment.

Newly-inducted union Minister of State for Urban Development Deepa Dasmunshi demanded a Central Bureau of Investigation (CBI) probe into the Haldia stalemate.

CPI-M central committee member Mohammed Salim expressed "shock" over the "irresponsibility" of the state government.

Entrepreneurs and several industry bodies observed that the development would worsen the state's industrial prospect after the Singur fiasco.

Tata Motors had pulled out its small car Nano project from the town in Hooghy district following an often violent and sustained anti-land acquisition movement, spearheaded by then opposition leader Mamata Banerjee in 2008.

Bengal Chamber of Commerce and Industry president Kallol Dutta said: "It is an unfortunate incident and it will surely have a negative impact on state's image."

"If ABG leaves Haldia, the port is bound to lose business, as bigger cargo ships will be heading for other nearby ports where mechanised loading-unloading is available," said Deepak Jalan, president of MCC Chamber of Commerce and Industry.

ASSOCHAM, however, said HBT's decision was hasty and it would "not have any impact on investment flow in the long run."

"But the government should also not be delaying action against those taking law and order in their hands," the chamber's secretary general D.S. Rawat said.

"Did they have any agreement with the state government? Ask the Port authorities," state Industries Minister Partha Chatterjee shot back when asked about the development.

Dola Sen, president of INTTUC, the labour wing of Banerjee's Trinamool Congress, claimed HBT's decision to leave would not affect the state's image for attracting investment.

"It was simply a contractor for cargo loading and unloading. What harm will happen if it pulls out," Sen asked.

She also said the way the cargo handler retrenched 275 workers was against labour laws. "They fired the workers by sending SMSes, which was against any law."


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