Bhubaneswar, Mar 8 (PTI) The officers association of the Neelachal Ispat Nigam Ltd on Sunday urged the Centre to review its decision to disinvest 100 per cent equity in NINL and demanded that major promoters infuse funds for running of the steel plant at the optimum level.
NINL has a 1.1 Mtpa integrated steel plant in Kalinganagaar in Odisha. MMTC has 49.78 per cent share in NINL, while Odisha government has 32.47 per cent stake through IPICOL and OMC.
'Government should review the decision of the disinvestment process. Major promoters of NINL like MMTC, OMC and IPICOL should immediately infuse fund for running operation of the steel plant at optimum level and to bring mines operative,' Neelachal Executive Association (NEA) president Avijit Koley and general secretary AK Pradhan said.
They claimed that disinvestment may not be the remedy of all problems of NINL and instead merger of NINL with state-owned Sail or Rinl will pave way for meeting mutual interest to expand steel capacity in the country.
Koley said that NINL had achieved net profit up to 2011-12. The NEA president claimed that the company made loss from 2012-13 due to low equity infusion, insufficient cash flow, want of fund for repair, modernization, expansion, inadequate supply of raw materials, high production cost and commission at high rate to MMTC upon purchase and sell.
In 2018-19, NINL took many positive steps towards revival and blast furnace capital repair increased productivity, while its captive mine got all clearances in 2019, he said.
The Cabinet Committee on Economic Affairs (CCEA) has approved strategic disinvestment of 100 per cent equity shareholding in NINL.
'Merger with Sail/Rinl will allow fulfilling mutual interest to achieve capacity expansion. Given uncertainties associated with greenfield projects, acquisition of NINL by Sail/Rinl appears to be a preferred option,' they said.
NINL has 2500 acres of undisputed land sufficient for expansion of up to 10 MTPA, own captive mine of 110 million tonne of estimated reserve and mining lease for 50 years, state of the art production unit and good connectivity.
'Merger with Sail or Rinl will give a big boost towards capacity expansion of psu steel units,' they said.
The claimed that around 10,000 people are dependent on NINL for livelihood and stressed the need for immediate infusion of fund for running of the plant. PTI SKN RG RG