In view of the uncertainty prevailing over disinvestment of the NINL plant in Kalinganagar, the Neelachal Executive Association (NEA) has urged the Central Government to reconsider its decision and instead keep all the assets of NINL under a Central PSU. "Since all the present share holders are from State and Central PSUs, the NINL merger with steel PSUs should not create any problem.
Hence an alternative model has to be worked out, so as 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," opined NEA general secretary Ajit Kumar Pradhan.
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, he added.
Notably, after a decision of strategic disinvestment of 100% shares in the NINL taken by the Central Government, major promoter MMTC as well as other minor promoters of the plant have stopped further funding for running of the plant leading to suspension of production of all units since March. The employees have not got their salaries for past nine months leading to restlessness among employees and strikes on several occasions. Its registered employees unions have filed a writ application in October in the Orissa High Court challenging the action/inaction of its managing promoters Metals and Minerals Trading Corporation Ltd (MMTC), Government of India, other promoters like the National Mineral Development Corporation (NMDC), Industrial Promotion and Investment Corporation of Odisha Ltd.
(IPICOL), Odisha Mining Corporation (OMC), Union of India represented through Ministry of Commerce and Industries, Ministry of Steel, Government of Odisha represented through Steel and Mines Department.
The NEA too has filed a writ petition in the Orissa High Court for disbursement of salary from February 2020. Already notices were served bt the court. Petitioners have mainly accused MMTC as solely responsible for the imbroglio.
The unions have said that if the stalemate in NINL continued for a longer duration the losses would not only mount up but also equipment and the process plant would be damaged. A profit making plant is being pushed to loss making unit and hence it calls for urgent action to correct the situation, they demanded.
Meanwhile, recently a high level meeting co-chaired by the Union Commerce & Industry Minister and Minister for PNG & Steel had resolved that a corpus fund of Rs 150/175 crore is to be kept for payment of salaries and arrears and other statutory dues of NINL.
Besides the Commerce Secretary and Steel Secretary shall take up the matter with Secretary Mines regarding permission to NINL for commercial operation of its mines.