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NINL Disinvest By December

Bhubaneswar: The process for disinvestment of Central PSU Neelachal Ispat Nigam Ltd. (NINL) is likely to be completed before December 2021. This was informed by NINL Managing Director, Rabindra Kumar Jha on Monday.

Speaking to reporters, Mr.Jha said, “The disinvestment plan is on fast track mode and the Government has received very well response. Many big bidders have come forward to take over the plant.”

“We are at the advanced stage of disinvestment. Most probably by December, this company will be disinvested,” Mr.Jha said.  Once the disinvestment process completed, the pending dues of all concerned will be cleared, he added.   

The employees have not received salaries pending since March 2020, Ranjan Nayak, an employee of NINL said, “Since very beginning, we are opposing the disinvestment plan and appealed to both State and Union Governments. However, till now, our problems have not been redressed.”   

Meanwhile, Tata Power has snapped electricity supply to Central PSU Neelachal Ispat Nigam Ltd. (NINL) due to long pending dues, sources said.

According to the source, electricity dues about Rs 56.70 crore is pending against the NINL, which is an advanced stage of disinvestment plan by the Union Government.  

In January last year, the Cabinet had approved the strategic disinvestment of the PSU. The Department of Investment and Public Asset Management (DIPAM) had invited preliminary bids for the strategic sale of NINL.

The last date for bid submission was March 29. Multiple expressions of interest were received for privatization of Neelachal Ispat Nigam Ltd, sources said. Among others, Tata Steel, JSW Steel and ArcelorMittal are seen as key contenders for the ailing integrated steel firm, the source said.

NINL is a joint venture company of four Central Public Sector Enterprises (CPSEs) namely MMTC Limited, NMDC Limited, Bharat Heavy Electrical Limited (BHEL) and Mecon Limited and two-state PSUs of the Odisha Government, Industrial Promotion and Investment Corporation of Odisha Limited (IPICOL) and Odisha Mining Corporation (OMC).

The equity shareholding consists of MMTC (49.78%), NMDC (10.10%), MECON (0.68%), BHEL (0.68%), IPICOL (12%) and OMC (20.47%).

In the meantime, Central PSU, NMDC has stepped in to provide technical and financial assistance to Neelachal Ispat Nigam Limited (NINL) for resumption of their mining operations in Odisha.

NMDC under Ministry of Steel will be helping the operations of NINL iron ore mines at Mithirda mine block, which have resumed.

Under the aegis of the Ministry of Steel, Ministry of Commerce and DIPAM, NINL approached NMDC for support.

To provide impetus to the supply of high grade iron ore in the state of Odisha, NMDC signed a MoU to extend assistance to NINL.

For 2021-22, the Union Government has set a disinvestment target of Rs 1.75 lakh crore, over five times what it is aiming to raise in the current financial year. In the Revised Estimates, the target has been set at Rs 32,000 crore for the current fiscal.