Don't give Hindustan Zinc's residual stake to Vedanta: Minister
Minister of State for Commerce & Industry D Purandeswari countered claims made by Vedanta group that HZL was in losses and it was moving employees from its units in Visakhapatnam - her constituency, to Rajasthan units saying the Group Chairman
Anil Agarwal had recently reportedly said that the company has turned around is now profit making.
"For over two months now employees (of Vizag plant) have not been paid their salaries, which I consider is a coercive method to lay off employees," she wrote in a letter to Singh.
The Minister said when accosted, company representatives told employees that HZL was incurring losses and would consider transfering willing employees to its Rajasthan facility.
"This offer, to me, is short of being ridiculous as employees will not leave their families behind Andhra Pradesh and go to work and live forever in Rajasthan. This is again a ploy to convince the employees to leave Hindustan Zinc," she said.
When contacted, HZL in a statement said since zinc metal production in the facility has been stopped for the last 12 months, the company decided to transfer employees to other operational units in Rajasthan.
Vedanta Group had acquired government's majority stake in HZL and talks are on to sell the government's remaining 29.54 per cent stake in the company to Vedanta.
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