Former Finance Minister Prafulla Chandra Ghadai has thanked Chief Minister Naveen Patnaik for taking up the issue of Neelachal Ispat Nigam limited (NINl) plant at Kalinganagar with the Centre for capital infusion into the unit to keep it operational.
Ghadai said former CM Biju Patnaik, who had acquired NINl facility at Re 1 in 1994, wanted to make it a three-million tonne plant. However, due to the careless attitude of the Metals and Minerals Trading Corporation (MMTC), a Central public sector unit and one of the three promoters, the plant is passing through serious conditions at present.
Ghadai, while praising Chief Minister Patnaik for urging Union Commerce and Industry Minister Nirmala Sitharaman to ask the MMTC to pay Rs 149 crore as its share of equity as stipulated by bankers as a part of refinancing of the project loan, said the delay by the Central PSU was aggravating the financial conditions of the unit.
“While Tata Steel, Visa Steel, Jinal and Mesco are running with profits, what ails NINl plantIJ” questioned Ghadai.
Chief Minister Patnaik on July 11 had urged the Union Minister to instruct the MMTC to provide additional equity support for the survival of the Neelachal Ispat Nigam limited (NINl).
It may be mentioned here that the NINl integrated steel plant is jointly promoted by MMTC and two State PSUs such as the Odisha Mining Corporation (OMC) and the IPICOl.
The joint venture needs infusion of an additional equity of Rs 300 crore to overcome the acute financial crisis. The State Government has already accorded its approval for infusion of equity of Rs 80 crore in last two years as pro-rata share by the OMC.
Equity of 49.78 per cent of the NINl is held by the MMTC, while the State PSUs together hold 27.61 per cent of its equity.