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Ghadei Bats For NINL

While there is great demand to help out Neelachal Ispat Nigam Limited (NINL) to overcome financial stress, issue was raised in Odisha Legislative Assembly to support the Steel Maker, which holds huge potential.


Priti Ranjan Ghadei, BJD Lawmaker raised the issue in Zero Hour in the Odisha House, while appealing Chief Minister Naveen Patnaik to intervene in the matter.

Mr.Ghadei, the Sukinda Lawmaker pointed out that NINL is in dire straits as MMTC, which holds 49.78 Percent share has decided to disinvest its share in NINL and has made a disclosure with National Stock Exchange of India (NSEI).

After its decision to disinvest its share, MMTC is not infusing any funds in NINL, which has created an impasse.

While Koira Captive Iron Ore Mines of NINL  is all set to start its operation and the Company will save Rs.200 Crore Per Annum on Raw Material front, this will make NINL a long deserved Turn Around.

Under this backdrop, MMTC, the major promoter has suddenly opted for disinvestment of its share in NINL and has intimated SEBI in this regard, said Mr.Ghadei.

He said further, MMTC has stopped infusion of Working Capital to carry out day to day running of the Plant since last three months.

Severe liquidity crunch has compelled the Blast Furnace for blow down and hence suspension of production.

Lack of immediate infusion of Working Capital will result in Long Term shut Down of the Blast Furnace, which will hit NINL badly, said Mr.Ghadei.

This has created a panicky situation amongst the employees and other stake holders.

He apprehended that it is going to affect around 10,000 people directly and indirectly, those who are dependent on NINL for their livelihood.

Mr.Ghadei pleaded that in this transition period of disinvestment, Government of Odisha is requested to come to immediate help and arrange for infusion of funds in NINL.

He said this the Dream project of Legendary Leader Biju Patnaik, which was conceived as Second Steel Plant of Odisha, way back in 1982 and after long years MMTC joined as Main Promoter in 1996.

Odisha Government through OMC and IPICOL holds 27.65 Percent share in NINL and as one of the Major Share Holders, the State Government is needed to extend its support in a difficult time of NINL, said he.

Recently, NINL Managing Director has approached the State Government to infuse funds at least Rs.300-400 Crore to tide over the financial stress as the Company will come out with rich results in near future.

State Government will have to take a call in this regard and Mr.Ghadei urged Speaker Odisha Legislative Assembly to impress upon Minister Industries and Steel & Mines to take up the issue with the Chief Minister.


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