The Neelachal Executive Association (NEA) has urged merger of the Neelachal Ispat Nigam Limited (NINL) under a Central PSU.
Notably after the decision of strategic disinvestment of 100 per cent shares in NINL taken by the Central Government, major promoter MMTC as well as other minor promoters have stopped further funding for running of the plant leading to suspension of production of all units from March last.
The employees have not been their salary for past ten months.The NINL once claimed as the largest exporter of pig iron is in the process of disinvestment being carried out by DIPAM under Ministry of Finance. EOI (Expression of Interest) was floated on January 25. In view of uncertainty arising due to global meltdown of economy caused by Covid-19 pandemic, it is very difficult for the DIPAM to arrange quickly a strategic investor to save the glorious public asset, said sources.
Meanwhile reiterating its demand for merger of all assets of NINL rather than divestment of the plant, NEA general secretary Ajit Pradhan said since all the present shareholders of NINL are from State and Cental PSUs, the Government should find out a mechanism to merge the unit with a steel PSU like SAIL/RINL/NMDC who are in the business of mines and steel making. In such an event MMTC shares can be taken over by a steel PSU.
He informed that a high level meeting co-chaired by the Commerce and Industry Minister and the Minister for PNG & Steel on November 10 last had resolved that a corpus fund of Rs 150/175 crore would be kept for payment of salaries and arrears and other statutory dues of the NINL. Besides, it was resolved to permit the NINL to sell its 5 lakh tonnes (25% of its production capacity) iron ore from its captive mines to alleviate its financial stress. Pradhan urged the authorities to implement the decisions soon and resume production in the plant.
"Any delay in restarting the production and sale will lead to loss of revenue to State and Central Governments and will affect the livelihood of 5,000 employees as well as the surrounding beneficiaries. After the merger, the NINL will play a major role in the economic activity of the country as well as bringing industrial harmony in the region," the NEA said.