siness community, who were mainly traders. With technological obsolescence the industries fell on bad times, labour unrest started and finally engulfed the state of West Bengal in the late 1960s. Even the new industries in Durgapur were affected by the militancy, and in no time most of the industries in Durgapur were in shambles.
That continued for some years but the result was that many of the sick industries were on the verge of closure. It was evident that some of the industries were technically unsound; for example, Durgapur Steel Plant was technologically obsolete and needed huge investment for modernization. The political chaos submerged all such concerns and no investor considered the region safe for any major investment. When unemployment started pinching, the left was settled comfortably in power. There was rethinking about revival of industries in West Bengal.
The late 1980s witnessed a turn-around in the fortunes of SAIL, with Durgapur Steel Plant being one of the plants to be modernized at a cost of Rs. 5,000 crore. However, it continued to make huge operating losses and by the mid-nineties rumours of a slow death of the plant along with the city was making the rounds.
Fortunately, DSP management with public support of the trade unions was able to turn around the dire situation with thousands of job cuts through voluntary retirement schemes and modernizing efforts. Now Durgapur Steel Plant is operating at above its rated capacity and earning profits after deduction of substantial amount of interest and depreciation resulting from the massive investment in modernisation. The plant is undergoing further expansion and is all set for a momentous future. A number of other industries, for example Alstom Projects India Limited (erstwhile ACC-Babcock Ltd), Philips Carbon Black Ltd. and Graphite India Ltd., were doing well. Alloy Steels Plant has turned the corner. MAMC has been taken over by power giant Damodar Valley Corporation, Coal
