Posco Maharshtra Steel Limited (PMSL), a major supplier of cold rolled coil (CRC) to the domestic automobile industry, has suffered a serious setback to its operations following disruptions created by a section of local politicians and workers, Maharashtra government officials said on Friday, March 12.
The officials said that the section of workers and politicians have blockaded movement of goods and supplies in and out of the plant located in western India, preventing workers from entering the plant and creating serious disruptions to the entire supply chain of the plant.
In a communication to the Maharashtra government, PMSL said that production of car makers risk coming to a “complete standstill” if issues of production and supplies at the steel makers’ plants are not resolved immediately, an official said, quoting from the communication.
Local politicians and a section of workers have launched disruptive protests regarding labour issues, preference of employment to locals, and the raising of wages of temporary contract workers.
The Society of Indian Automobile Manufacturers (SIAM), the representative body of the domestic automobile industry, has also communicated to the government expressing serious concerns regarding disruptions of steel supplies to passenger car manufacturers.
Indian passenger car makers Maruti Suzuki India Limited (MSIL), Hyundai Motors India Limited (HMIL), Kia Motors, Tata Motors, and Mahindra & Mahindra are some of the largest companies that source steel raw materials from PMSL.