The Kalinganagar-based Neelachal Ispat Nigam Limited's (NINL) production has been stopped since mid-June 2019. More than two years' shutdown of the plant is severely affecting health of plant, equipment and machineries, said Neelachal Executive Association (NEA), urging the authorities to resume operation of the unit soon. The NEA sought intervention and support from the Union Ministry of Commerce and Union Ministry of Steel, besides the Government of Odisha to save the unit, by engaging any steel PSU under the Steel Ministry like SAIL/RINL/NMDC to run the plant.
Notably, the PSU with its captive iron ore mines (110 Million ton reserve) is under disinvestment by the DIPAM with the approval of CCEA on January 8 2020 but the process is delayed for several reasons. Four deadlines of completion of disinvestment already have crossed.Meanwhile, Expression of Interest was invited afresh on January 25 . Bidders have been shortlisted by DIPAM for further process. Till now completion of disinvestment process is unpredictable and uncertain, said NEA, further narrating that the employees of the NINL are passing through a very pathetic situation.
The NEA on July 6 communicated to Union Steel Ministry and Union Commerce Ministry that when joblessness and sluggish economic growth is a worry now in Indian economy, almost 3,500 contractual employees have lost their job in NINL in Covid-19 pandemic period. "The employees are unpaid for last 1 year i.e due from March 2020 ; more than 10,000 people are directly and indirectly affected. 17 NINL employees have died due to nonpayment of salary and want of medical facility," said genreal secretary (NEA) Ajit Kumar Pradhan.He further informed that a meeting co-chaired by Union Ministers of Commerce and Industry, Railways, Petroleum and Natural Gas and Steel, on November 10 last year had decided to create a corpus to pay arrear salaries to the employees, but the same has not happened yet.
On March 9 2021 NINL has got permission to sell 50% of annual capacity of iron ore mines to sell in open market to meet employees' salary and arrear with other legitimate dues. Even if MDO has been selected but production from mines will take time, said Pradhan.