While the ailing Neelachal Ispat Nigam Limited (NINL) is passing through critical phase and requesting the State Government to pump in at least Rs 250 crore for its survival, a decision in this regard is yet to come, which is making the public sector steel maker anxious.
The NINL is facing worst financial crisis and situation is very critical so far as running the plant is concerned as there is hardly any funds left in the kitty. It was estimated that Rs 700 crore is needed on urgent basis to save NINL plant from closure.
Senior officials of OMC, IPICOL and Department of Steel and Mines and Industries are engaged in talks in this regard.
Whether it is justified to pump in Rs 250 crore at this juncture is being discussed and both pros and cons are being considered before taking a final decision at the highest level.
Officials are not in a mood to invest more funds in NINL at this stage as Department of Investment Promotion and Asset Management (DIPAM) has already started process of strategic disinvestment.
Now as providing working capital at this stage is urgently needed, the NINL has made a plea to the State Government as OMC and IPICOL are the shareholders in the steel company.
The Ministry of Commerce and Industries has also convened a meeting in this regard chaired by Union Minister Piyush Goyal and later it was decided to pump in Rs 700 crore to keep operation of NINL till strategic disinvestment is made.
Senior officials in MMTC say that if the plant runs fully and disinvestment is made with a normal situation, valuation of NINL will go up and shareholders will be benefitted in a big way.
If the plant does not run and faces closure, its valuation will affect adversely and disinvestment will not fetch expected amount.
In the meantime, MMTC CMD Ved Prakash has brought the issue to the notice of the State Government, while requesting to release the amount immediately to save NINL from abrupt closure.
Sources said that MMTC has already pumped in Rs 280 crore since September, after the decision was taken to provide funds to NINL.
However, the OMC and the NMDC are yet to take a decision in this regard.
With more and more delay in providing working capital, NINL is facing a very critical situation and any time the plant will face closure, which will lead to chaotic situation and the steel maker will not be in a position to revive after the closure.