Neelachal Executives Seek NINL Merger with PSU
The Pioneer reported that in view of the uncertainty prevailing over disinvestment of the Neelanchal Ispat Nigam Limited plant in Kalinganagar, the
The Pioneer reported that in view of the uncertainty prevailing over disinvestment of the Neelanchal Ispat Nigam Limited plant in Kalinganagar, the Neelachal Executive Association has urged the Central Government to reconsider its decision and instead keep all the assets of NINL under a Central PSU. NEA general secretary Mr Ajit Kumar Pradhan said "Since all the present share holders are from State and Central PSUs, the NINL merger with steel PSUs should not create any problem. Hence an alternative model has to be worked out, so as to merge the unit with a steel PSU like SAIL/RINL/NMDC who are in the business of mines and steel making. In such an event MMTC shares can be taken over by a steel PSU. Any delay in restarting the production and sale will lead to loss of revenue to State and Central Governments and will affect the livelihood of 5,000 employees as well as the surrounding beneficiaries.”
After decision of strategic disinvestment of 100% shares in the NINL, major promoter MMTC as well as other minor promoters of the plant have stopped further funding for running of the plant, leading to suspension of production of all units since March. The employees have not got their salaries for past nine months leading to restlessness among employees and strikes on several occasions.
Neelachal Ispat Nigam Limited, a company promoted by MMTC Ltd, Industrial Promotion and Investment Corporation of Orissa limited and other government agencies has set up an 1.1 million tonne Integrated iron and steel plant at Kalinganagar in Jajpur district of Odisha