NMDC wants mining lease to bail out ailing NINL

| | BHUBANESWAR
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NMDC wants mining lease to bail out ailing NINL

Saturday, 19 October 2019 | PNS | BHUBANESWAR

While the Odisha Government is urging the National Mineral Development Corporation (NMDC) to bail out another public sector company Neelachal Ispat Nigam Limited (NINL), the latter has shown positive inclination to pump in funds to the ailing steel maker.

However, the NMDC urges for a major iron ore mines in Odisha so that it will be able to set up a mega iron ore project in the State.

As the NINL, based at Kalinganagar in Odisha, is in dire straits due to paucity of funds, the State Government, as one of the major investors, had requested the NMDC to help in arranging funds for NINL to run its operation.

The NINL requires Rs 300 crore for running its operation and the Ministry of Commerce and Industries had requested the Odisha Government to pump in funds as the steel maker is closing one plant after another due to paucity of funds.

Looking at the grim scenario, Union Minister Commerce and Industries, Piyush Goyal in a meeting had advised the MMTC and the Odisha Government to pump in required amount of funds to the NINL.

While disinvestment of NINL is on move and at this stage if plants are closed down then its value will go down and share holders will lose their money.

The NMDC is interested for a mining lease in Odisha and the NINL has a huge iron ore deposit.

So if the NMDC invests in thr NINL, then its stake for a mining lease brightens up, feel senior officials in Department of Steel and Mines.

Sources said the NMDC has shown positive mindset to invest more in NINL though insiders say that the NMDC has already invested Rs 100 crore in the NINL, including Rs 49 crore in Konarak Met Coke Limited and Rs 51 crore in NINL.

After the investment of Rs 100 crore in NINL, the NMDC has not got any mining lease, pointed out an insider of NMDC.

Under this backdrop, it seems NMDC is interested to further invest more funds in NINL with a rider that the Odisha Government is needed to reserve a major iron ore deposit for NMDC.

The NMDC authorities are in touch with the State Government officials in this regard and want an iron ore deposit worth more than 200 Million Tonnes.

Major iron ore mines like Malangtoli, Mankadnacha, Khandadhar and others are now available and the NMDC has requested the Odisha Government to reserve one of these iron ore blocks for the Central mining major.

Now, the Odisha Government would take a final call in this regard as NMDC is interested to take up Corporate Social Responsibility (CSR) activities in a big way in the peripheral areas of the iron ore mines, which would be allocated to the NMDC, sources said.

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