Jharsuguda (OT Webdesk)—Thousands of workers, vendors, and local stakeholders gathered outside the Bhushan Power and Steel Limited (BPSL) plant in Jharsuguda on May 7, protesting the Supreme Court’s ruling that mandates the liquidation of the steel unit. The decision, delivered on May 2, has sparked fear and uncertainty among nearly 19,000 direct and indirect workers associated with BPSL.
The demonstrators voiced their deep concerns about job security, halted operations, and economic instability. Holding placards and chanting slogans, they argued that the ruling contradicted the core purpose of the Insolvency and Bankruptcy Code (IBC), which is meant to revive struggling businesses rather than dissolve profitable enterprises.
Local leaders, including Ms. Avanti Nayak, Sarpanch of Thelkoloi, highlighted that BPSL is a crucial contributor to the region’s economy, supporting thousands of jobs, small businesses, and community welfare initiatives. Workers expressed frustration, pointing out that the company had successfully turned around under JSW Steel’s management, ensuring steady operations, timely wages, and compliance with regulations.
Hemant Pandey, a manpower supplier for industrial units in Jharsuguda, noted, “Sending a fully functional, employment-generating industrial asset into liquidation defeats the very purpose of IBC and threatens to undo years of economic recovery in western Odisha.”
Many protesters underscored allegations against the former promoters of BPSL, accusing them of financial misconduct, including siphoning funds and fraudulent transactions, which had led to the company’s insolvency. They demanded strict penalties against those responsible while urging the judiciary and government to reconsider the liquidation order in the interest of thousands of workers.
Industry experts warn that the ruling could deter investors from engaging with the IBC process due to prolonged legal battles and uncertainty. The liquidation of a well-functioning industrial unit is seen as a potential setback for Odisha’s industrial ecosystem.
With protests intensifying, stakeholders are calling for urgent government intervention to prevent massive job losses and economic disruption. As tensions rise, the fate of BPSL and its employees hangs in the balance.
