Sesa Goa, an arm of London-listed Vedanta Resources, has deferred payment of 10-25 per cent of salaries to its senior employees, having to face a big dip in sales on account of a ban on iron ore mining in Goa and Karnataka.
As of 1 January, payment of 25 per cent of salaries has been deferred for top management, including the company's managing director and other board members, and 10 per cent for middle management.
"We have deferred 10 to 25 per cent of the salaries of company's executives from 1 January but it is not a cut, only deferment applicable to non-unionised and managerial staff. I myself will take a 25 per cent deferment in salary," PTI quoted Sesa Goa managing director P K Mukherjee as saying.
The country's largest private sector iron ore producer is going through possibly the worst period in its history due to mining ban in Goa, where it is based.
The company did not produce or sell iron ore in the last quarter from Goa, where the ban was first imposed by the state government in September and subsequently extended by the Supreme Court in October.
The ban was imposed after a report by the Justice M B Shah commission, which estimated a loss of Rs35,000 crore to the exchequer due to illegal mining in the state.