NINL has a 1.1 Mtpa integrated steel plant inKalinganagaar in Odisha. MMTC has 49.78 per cent share inNINL, while Odisha government has 32.47 per cent stake throughIPICOL and OMC.
"Government should review the decision of thedisinvestment process. Major promoters of NINL like MMTC, OMCand IPICOL should immediately infuse fund for runningoperation of the steel plant at optimum level and to bringmines operative," Neelachal Executive Association (NEA)president Avijit Koley and general secretary AK Pradhan said.
They claimed that disinvestment may not be the remedyof all problems of NINL and instead merger of NINL withstate-owned Sail or Rinl will pave way for meeting mutualinterest to expand steel capacity in the country.
Koley said that NINL had achieved net profit up to2011-12. The NEA president claimed that the company made lossfrom 2012-13 due to low equity infusion, insufficient cashflow, want of fund for repair, modernization, expansion,inadequate supply of raw materials, high production cost andcommission at high rate to MMTC upon purchase and sell.
In 2018-19, NINL took many positive steps towardsrevival and blast furnace capital repair increasedproductivity, while its captive mine got all clearances in2019, he said.
The Cabinet Committee on Economic Affairs (CCEA) hasapproved strategic disinvestment of 100 per cent equityshareholding in NINL.
"Merger with Sail/Rinl will allow fulfilling mutualinterest to achieve capacity expansion. Given uncertaintiesassociated with greenfield projects, acquisition of NINL bySail/Rinl appears to be a preferred option," they said.
NINL has 2500 acres of undisputed land sufficient forexpansion of up to 10 MTPA, own captive mine of 110 milliontonne of estimated reserve and mining lease for 50 years,state of the art production unit and good connectivity."Merger with Sail or Rinl will give a big boost towardscapacity expansion of psu steel units," they said.
The claimed that around 10,000 people are dependent onNINL for livelihood and stressed the need for immediateinfusion of fund for running of the plant. SKNRG RG