Finally, the Odisha Government has come to the rescue of the ailing Kalinganagar-based steelmaker Neelachal Ispat Nigam Limited (NINL) by sanctioning Rs 178 crore from Odisha Mining Corporation (OMC), which is one of the promoters of the joint venture.
While the NINL direly needs capital infusion as its financial situation is going from bad to worse, the OMC has sanctioned Rs 178 crore to meet debt commitments of the steel unit towards the banks.
Even as Chief Minister Naveen Patnaik is concerned for the steel maker, it is Chief Secretary Asit Tripathy, known for his industry friendliness, who went all out to extend support for the NINL, said sources.
Principal Secretary Industries Hemant Sharma has also taken up the issue with concerned authorities, said sources.
OMC Managing Director R Vineel Krishna has been sensitive towards the requirement of NINL and he presented the requirement of the NINL for which the OMC Board has sanctioned the funds to be released in phases.
NINL Managing Director SS Mohanty, who is trying hard to save the ailing steel maker from closedown, has thanked the OMC authorities and the State Government as well.
Mohanty, who is running from pillar to post to save the NINL from total shutdown, has been in constant touch with the senior officials of the State Government and Government of India.
Sources in knowledge of the development said timely intervention of Union Minister Steel, Dharmendra Pradhan, helped the NINL receive financial support from the OMC, MMTC, NMDC during the period of crisis.
Pradhan is proactively pursuing the matter with both Central and State Government PSUs for favoring the NINL.
Meanwhile, the NINL has received Rs 60 crore from the NMDC and soon it is expected that the Central PSU will provide another Rs 20 crore, said sources.
As against a request for Rs 250 crore, the Odisha Government has released through OMC Rs 178 crore, said sources adding that the NINL is expecting more support from the principal promoter.
Now, over 10,000 people are depending on the NINL, both directly and indirectly, and after expansion the number will go up to more than one lakh, said sources.
With full fledged running condition, the NINL will fetch more price through strategic disinvestment and it will attract huge investment and expand its capacity, sources said.