By Our Correspondent
BHUBANESWAR/NEW DELHI: With the NINL Executive Association knocking the doors of Odisha High Court, the Union Government’s move for Strategic sale of NINL may face legal hurdle. The NINL Executive Association has been demanding merger with SAIL and RINL instead disinvestment.
The Nilanchal Ispat Nigam Limited,(NINL) Executive Association, has been regularly pursuing the matter with Union Industry, Commerce and Railways Minister Piyush Goyal and Union Steel-PNG Minister Dharmendra Pradhan. Few weeks back, the Centre had 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 had received a month’s salary after a period of 9 months.
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 last date for submission of EoIs for NINL is March 29. The shortlisted bidders will be asked to put financial bids in the second stage. NINL posted a loss of Rs 402 crore in FY19 and Rs 827 crore in the first nine months of FY20.NINL posted a loss of Rs 402 crore in FY19 and Rs 827 crore in the first nine months of FY20.The Centre on Monday invited expressions of interest (EoIs) for strategic disinvestment of 100% stake in Neelachal Ispat Nigam (NINL) held jointly by four central PSUs and two Odisha government PSUs.
In the two-stage process, the last date for submission of EoIs for NINL is March 29. The shortlisted bidders will be asked to put financial bids in the second stage. The transaction is seen materialising in the next financial year. According to bidding terms, interested bidder/s for NINL must have a net worth of Rs 2,000 crore.
However, again in 2019-20, it suffered Rs 3,910-crore loss in 2019-20.Cabinet to clear sale of Rashtriya Ispat Nigam (RINL) soonThe lender, which is still under the Reserve Bank of India’s PCA framework, had posted a net profit of Rs 30.12 crore for the second quarter.UCO Bank posts Rs 35-crore net profit in Q3, provisions fall 76%
NINL posted a loss of Rs 402 crore in FY19 and Rs 827 crore in the first nine months of FY20.Equity shareholding of NINL consists of Minerals & Metals Trading Corporation (49.78%), National Mineral Development Corporation (10.10%), MECON (0.68%), Bharat Heavy Electricals (0.68%), Industrial Promotion and Investment Corporation of Odisha (12%) and Odisha Mining Corporation (20.47%).
The land bank may be of interest to new investors since it may provide a ready expansion opportunity. Total land area leased to NINL at the existing facility is around 2,500 acre. The plant facilities are located at a strategic location at Kalinganagar Complex, Odisha, with proximity to iron ore and other raw materials. It also has been allotted captive iron ore mine in Sundargarh and Keonjhar districts.The Centre is hopeful that the successful strategic buyer may bring in new management/technology/investment.
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.
