Chamling threatens pvt sector to review terms of accord
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Chamling threatens pvt sector to review terms of accord

Last Updated: Monday, October 12, 2009, 20:25
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Gangtok: Accusing the private sector with deliberately violating in a "brazen manner" their agreement with the Sikkim government to provide employment to locals in their units, Chief Minister Pawan Kumar Chamling on Monday threatened to review the terms of agreement with the 'guilty' companies.

"The private companies have been violating in a brazen manner the terms of understanding/agreement with the state government to promote local employment to such an extent that local people employed in the industrial units have been harassed and victimized by the management", he said at an investor's meet here.

The local workers were discriminated by being paid less remuneration than their colleagues from outside while the private companies have gone back on their commitment to provide training for honing their skills for available jobs.

Private industrial units, including in the pharmaceutical and hydro power sectors, have reneged on their promise to ensure 100 per cent employment of the local people by giving them the requisite training at the companies' expenses, he alleged.

Chamling charged pharmaceutical company Cipla Ltd had recently sacked 140 trained local employees to hire cheap labour from outside and Sun Pharma paid less remuneration to the locals leading to unrest in both units.

Chamling charged hydro power company Lanco Energy Private Ltd, developing 500MW Teesta Stage VI project in the Himalayan state, failed to provide employment to locals and hired instead 70 per cent of its labour from Tamil Nadu.

He also criticised the hospitality sector for not providing cent per cent employment to local people.

''The state government will no longer tolerate the private sector's bid to resist employment to local people,'' the Chief Minister said and asked private units to furnish details within one month about availability of jobs in its units, local employment and payment of revenue to the state government since their inception.

With regard to bigger industrial units, both functional and proposed, Chamling asked them to provide details of land acquisition, contributions to local area development and compensation to project-affected people.

The state government will review the terms of agreement with the private companies and take necessary action to protect socio-economic interests of the state and its people based on the details, he said.

Chamling, however, did not say whether the government would scrap the agreement/understanding with those private units found guilty of having failed to promote local employment.

Chamling said the private sector had benefited from the tax exemption on investment for setting up units in Sikkim on the consideration that they will generate local employment and be a harbinger of socio-economic development in the state.

It cannot be allowed to 'renege on its commitment' to the socio-economic interests of the state and its people, he said and warned that a strong public emotion was brewing up against the private units practising discriminatory labour practices.

"These units must be prepared to face the music on their own. The state government will not come to the rescue of any private company if the public emotion decides to act against the management of these companies," he said.

Earlier, chief secretary T T Dorjee asked senior officials to hold review meetings with the management of the private companies from time to time to ensure that the latter complied with the objective to provide local employment and contribute to socio-economic development.

Bureau Report

First Published: Monday, October 12, 2009, 20:25

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