By Our Correspondent
BHUBANESWAR/NEW DELHI: The Nilanchal Ispat Nigam Limited,(NINL) Executive Association, has thanked Union Industry, Commerce and Railways Minister Piyush Goyal and Union Steel-PNG Minister Dharmendra Pradhan after the Union Government taken initiative for selling iron ore in open market to alleviate financial stress of NINL.
The Centre has granted permission to NINL to sell up to 25 percent of the annual iron ore production for a period of one year or until disinvestment of the company.NINL employees have finally received a month’s salary after a period of 9 months.
“We thank hon’ble steel min @dpradhanbjp & CIM @PiyushGoyal for taking initiative for selling iron ore in open market to alleviate financial stess of NINL. Save NINL by merging with SAIL/RINL/NMDC.#JusticeForNINLEmployees#SAVENINL@PMOIndia@CMO_Odisha,” NINL_Executives tweeted @NINL_Executives.
An order issued by the Ministry of Mines, dated January 5, noted that there has been a drastic reduction in production of iron ore in the country in the wake of the Covid-19 pandemic and granted permission to NINL to sell up to 25 percent of the annual iron ore production for a period of one year or until disinvestment of the company, whichever is earlier.
“There has been drastic reduction in production of iron ore in the country due to various reasons as is evident from the fact that in the year 2020-21 up to September, 2021 only 76 million tonnes of iron ore was produced in the country as compared to 111 million tonnes of iron ore production in the corresponding year of the last year,” said the order.
“Therefore, in order to maintain supply of iron ore in face of shortfall of production of iron ore in the country and also to help to reduce the financial distress of NINL, the Central Government in exercise of the powers conferred under section 20A of the MMDR Act, 1957 hereby grants permission to sell up to 25 percent of the annual iron ore production of NINL as per the Mine Development and Production Agreement executed by the company for a period of one year or till the completion of disinvestment of the company, whichever is earlier, under intimation to the State Government and Indian Bureau of Mines,” the order added.
NINL is a 1.1 MTPA integrated iron and steel plant in Kalinganagar, Odisha. It had been granted a mining lease in the year 1999. However, the steel PSU’s captive iron ore mines had not been operational until now. At a meeting held on November 10, 2020, it was decided that Ministry of Commerce and Industry will coordinate with the Ministry of Steel and Mines to secure permission for NINL for commercial operation of its captive mines till disinvestment gets completed.
MMTC holds majority stake of 49.78 % in NINL while Odisha Mining Corporation and Industrial Promotion and Investment Corporation of Odisha Ltd have 20.47 % and 12 %stakes respectively. Three other CPSUs NMDC, MECON and BHEL hold minor share in NINL.
Employees of defunct NINL are waiting to get their 8 months pending salary. Operations at 1.1 million tonne integrated NINL plant , are suspended at the moment. Future of about 5,000 employees, mainly of local population, has plunged into uncertainty. While produced materials worth about Rs 200 crore are lying in the premises of NINL, its employees are not getting salary since March on the grounds of funds crunch.In January 2020, the Centre gave an in-principle approval for strategic sale of NINL by allowing the six PSU shareholders to sell their stake in the steel company.
