Uttarakhand Mining Ban Leaves 500 Employees Without Salaries for 15 Months
In a severe industrial crisis unfolding in Uttarakhand's hill region, over 500 employees of Almora Magnesite Ltd have been left without salaries for the past 15 months. The financial distress stems from a blanket ban on mining operations in Bageshwar district imposed by the Uttarakhand High Court last year, which forced the suspension of the company's activities.
Workers Forced into Daily-Wage Labor and Migration
The prolonged salary stoppage has pushed hundreds of skilled workers into acute financial hardship. Many have resorted to taking up daily-wage labor or temporarily migrating to cities to support their households. Pradeep Rautela, an operator at the unit, revealed his struggle, stating he worked in Delhi for six months to make ends meet before being recalled by management.
"I am trained as an operator, but here I am doing manual labor without pay. Running a household without a salary has become impossible," Rautela said, highlighting the desperation faced by employees.
Factory Shutdown with Mandatory Attendance
Despite the complete shutdown of operations, workers are still required to report to the factory daily without any productive work. Girish Chandra, an employee with 15 years of service, described the absurd situation: "The plant is closed, but attendance is mandatory." This requirement adds insult to injury for workers who haven't received compensation in over a year.
Technical Operations and Equipment Standstill
Senior worker Gayatri Prasad explained that the mining operation spans nearly seven kilometers and involves extracting magnesium from hard rock. Although this process differs from soapstone mining, it was halted under the same court order. "Machinery worth crores is lying idle, and even if the ban is lifted, restarting operations will be extremely difficult," Prasad warned, indicating long-term damage to industrial infrastructure.
Broken Promises and Government Inaction
Employees allege that assurances given during protests have gone unfulfilled. Senior employee Shanti Lal revealed that workers were promised pending salaries would be cleared by selling existing stock, but "months have passed, and nothing has materialized." He noted that the Uttarakhand government, through SIDCUL, holds over 40% stake in the company yet has made no concrete intervention. "Both the workers and the company need a relief package," Lal emphasized.
Deteriorating Stock and Financial Collapse
Lalit Mohan Kandpal, general manager of Almora Magnesite Ltd, confirmed the company had stock worth nearly Rs 4 crore that could have been used to pay salaries and meet operational expenses. However, "the stock remained unsold for over a year and has deteriorated. Its market value has dropped sharply, and we are now unable to sell it," Kandpal explained, detailing the compounding financial crisis.
Political Intervention and Industrial Significance
Local BJP MLA Parvati Das described the company as the only major industrial unit in the hill region, providing direct employment to more than 500 people and supporting thousands of families. "This company will not be allowed to shut down. I will raise the issue with the chief minister and seek a relief package," Das asserted, promising political action.
Once considered a cornerstone of Uttarakhand's industrial growth, Almora Magnesite Ltd previously produced nearly 2,000 tonnes of DB magnesite monthly, supplying major industrial centers including Bhilai and Jamshedpur. The company also contributed significantly to local markets, supplying construction materials worth approximately Rs 50 lakh—including sand, gravel, tiles, and bricks.
The situation represents a critical test for Uttarakhand's industrial policy and worker protection mechanisms, with hundreds of families facing uncertain futures as legal, financial, and operational challenges converge in this remote hill district.
