The Neelachal Ispat Nigam Limited (NINL), a company promoted by the MMTC, the Industrial Promotion and Investment Corporation of Odisha Limited (IPICOL) and other Government agencies, is in doldrums.
It was set up as a 1.1-million tonne integrated iron and steel plant at Kalinganagar in Jajpur district and claimed to be the second largest integrated steel plant of Odisha and largest producer and exporter
of saleable pig iron in the country since 2004-05. Presently, the NINL is passing through serious financial crisis and even unable to pay salaries to its employees for the last 2 months.
It is understood from reliable sources that, MMTC Ltd. is reportedly in discussion with SAIL and RINL for the past several years and due to inability and faulty policy of MMTC Ltd to finalize a deal, the company is in deep fiscal and managerial crises creating serious discontent among the workmen and local public.
Currently, some private industries, like Jindal, Tata and Mittal groups have reportedly shown interest in acquiring the plant and meanwhile, their heads have made several visits to the site.
Reliable sources suggest that, the present policy of MMTC for collecting a 6-per cent commission (3 per cent on incoming raw material and another 3 per cent at the time of selling finished products) out of NINL’s margin money made the NINL fiscally sick.
Some industry experts and local public are of the opinion that, the State Government which is reportedly having 29 per cent share in the company, should take over the NINL by supporting its running costs as an interim measure and subsequently can negotiate for its merger with SAIL for its good health.
The industry has all state of the art facilities and process units, namely, RMHS, Coke Oven, Sinter Plant, Blast Furnace, SMS, Power Plant and Quality Control facilities, sources said. On the other hand, there is a speculation among the local public that a powerful central leader is reportedly not in favour of merging the industry with the SAIL, but reportedly is in favour of handing over the industry (NINL) to any one of the three prospective private industries (Tata, Jindal or Mittal).