By Our Correspondent
BHUBANESWAR: Former Union Minister Braja Kishore Tripathy has written a letter to Prime Minister Narendra Modi and Union Steel Minister RCP Singh demanding resumption of production of Neelachal Ispat Nigam Limited by merging with NMDC , SAIL and RINL like its captive mines operation started with the financial and technical assistance of NMDC.
“This is with reference to my earlier letter dated 04th June 2020 was addressed to your good office and its copy was sent to Union Minister for Petroleum & Natural gas and Steel.
Neelachal Ispat Nigam Limited, a 1.1 Million Ton per annum steel plant is a joint sector organization of Central government (49.78% shares of MMTC under ministry of commerce and 10.1% share of NMDC under ministry of steel and state government of Odisha (12% share of Industrial Promotion and Investment Corporation of Odisha Limited, IPICOL & 20.47% share of Odisha Mining Corporation, OMC),” Tripathy said in his letter.
This National asset is under disinvestment by Ministry of Finance being carried out by Department of Investment and Public Asset Management (DIPAM) since 2018. It is unfortunate that around after four years recently on date 23.12.21 financial bids were invited by submitting request for proposal by DIPAM on Dt:03.12.21. To my knowledge 10 January 2022 was the date for opening of bids for declaration of H-1 bidder by DIPAM, but this has not happened yet, the reasons best known to them, the former Union Minister said.
“It has been widely circulated in print media of local news papers and also broadcasted in electronic media through national TV channels on 23 and 24 December 2021, that big private players were bid only a maximum pittance of Rupees 6700 crore . Whereas the National property, NINL is having a captive iron ore mines of worth more than Rupees 1 lakh crore . Now the concerned authorities of Govt of India (GOI) are engaged in fixing reserve / base price of NINL for way forward the disinvestment process,” Tripathy wrote.
In my earlier letter, your good office was requested for the following:
capital Infusion of fund for day to day operation, smooth flow of raw material to ensure full capacity utilization and commissioning of own mine which is in the verge of starting will positively increase the Operating Profit Margin of NINL.
Merger with SAIL/RINL/NMDC will allow investment in NINL’s future modernization and expansion plans. Simultaneously it would satisfy SAIL/NINL’s basic requirement of raw material from the mines owned by NINL.
To achieve SAIL’s capacity expansion (target 50 MTPA by 2031), SAIL need not to go for land acquisition for capacity expansion. NINL has 2500 Acre undisputed land sufficient for expansion up to 10 MTPA.
Transfer of shares in NINL by MMTC and other PSUs to SAIL/NINL/NMDC, will just be a transfer from one Govt. to anther Govt. entity only.
Merger with SAIL/RINL/NMDC is a step towards Govt. objective of single state owned steel manufacturer to bring efficiency, productivity, profitability, faster investment decision, get cheaper funds for expansion, reducing dependency on Govt.
• But no action was taken immediately to revive the asset. Whatever replies received from concerned departments is only an easy escape and also not suitable to save the livelihood of 10000 families associated directly and indirectly with NINL.
• The decision of disinvestment of 100% shares of NINL which was taken by the Cabinet Committee on Economic Affairs (CCEA) on 08th January 2020 is unfair, unjust and illogical. Now this has become a case of looting of public money by using coercive power of authorities. So it is an urgent requirement to put an immediate curb to the disinvestment process.
• During my tenure in the Ministry of Steel National Mineral Development Corporation (NMDC) was introduced as a promoter to infuse money for the betterment of NINL.
• But I appreciate your effort taken to resolve the financial crisis and to disburse the salaries & arrears pending since March’2020 and other statutory & legitimate dues of employees of NINL , a meeting was organized and co-chaired by Union Minister of Commerce and Industry & Railways & Union Minister of Petroleum & Natural Gas and Steel, on 10 Nov 2020. It was decided to create a corpus to pay arrear salaries to the employees, but the same has not happened yet. By selling finished products lying at NINL premises only part salary (Basic & DA) up-to February2021 was cleared.
• On 09 Mar 2021 NINL has got permission to sell 50% of annual production capacity of iron ore mines to sell in open market to meet employee salary & arrear salary with other legitimate dues. Production of captive mines at Mithrida has started with the help of NMDC on Dt 27.08.2021.
• It will be reasonable & logical to start Pig Iron production using iron ore from own mine. These steps will increase profitability; present steel market is also demandable, but still employees of NINL are helpless, almost 2 years passed and plant production is stopped, no steps from shareholders or both Central Govt. & State Govt. have been proved fruitful.
• Intervention & strong support is required from Ministry of Commerce & Ministry of Steel, to save the National property in Odisha from ruin.
• When MMTC the managing promoter of NINL is reluctant to promote NINL, it will be best alternative to entrust NINL to either NMDC or leading steel PSU, SAIL for immediate resumption of plant production to avoid further degradation of national asset.
“In view of the above to save the glorious asset, NINL considering the livelihood of 10000 families mainly of local population including near about 1000 displaced and land looser mostly Adivasi and weaker section of the society plant production may be resumed by merging NINL with any steel PSUs like NMDC /SAIL/RINL like its captive mines operation was started with the financial and technical assistance of NMDC,” he added.
