The issue of the Neelachal Ispat Nigam Limited’s (NINL) financial revival was raised in the State Assembly on Saturday with Sukida MLA Priti Ranjan Ghadai urging Chief Minister Naveen Patnaik to intervene in the matter.
Ghadai pointed out that the NINL is in dire straits as the MMTC, which holds a 49.78% share in this company, has decided to disinvest it and has made a disclosure to this effect with the National Stock Exchange of India and intimated the Securities Exchange Board of India (ISEBI) in this regard.
The MMTC has stopped infusion of working capital for day-to-day running of the plant since last three months.
As the NINL’s Koira Captive Iron Ore Mines is all set to start its operation and the company would save Rs 200 crore per annum on the raw material front, it was expected to enable the company to achieve a significant turnaround.
But the MMTC has suddenly opted to withdraw its share.
Ghadai pointed out that a severe liquidity crunch has compelled the NINL’s blast furnace for a blow-down and, hence, suspension of production.
Lack of immediate infusion of working capital would result
in a long-term shutdown of the blast furnace.
This has created panic amongst the employees and other stakeholders. As many as around
10,000 people, who are dependent on the NINL directly and indirectly for their livelihoods, would be affected.
So, in this transition period of MMTC share disinvestment, the Odisha Government should come to immediate help and
arrange for of funds in the NINL, he pleaded.
He said that this was a dream project of Biju Patnaik which was conceived as the State’s second steel plant after Rourkela way back in 1982. After long years, the MMTC joined as its main promoter in 1996.
The State Government through its OMC and IPICOL holds
27.65 per cent share in the NINL.
So, as one of the major shareholders, the State Government should extend its support in the NINL’s difficult time.
Recently, the NINL Managing Director has approached the State Government to infuse funds of at least Rs 300-400 crore to tide over the company’s financial stress so that the company comes out with rich results in near future, Ghadai said.
