While produced materials worth about Rs 200 crore are lying in the premises of PSU Neelachal Ispat Nigam Limited (NINL), its employees are not getting salary during the worst period of Corona lockdown since March on the grounds of funds crunch.
The NINL, which has its integrated steel plant in Kalinganagar of Jajpur is in a dire straits as its main shareholder Mineral and Material Trading Corporation (MMTC) is not coming to its rescue.
So far share break-up is considered, the MMTC, which has 49.78 per cent share, the Nation Mineral Development Corporation (NMDC) has 10.1 percent share. The Odisha Government undertakings such as Odisha Mining Corporation (OMC) has 20.47 percent share whereas IPICOL has 12 per cent. Other houses like BHEL, MECON have 7.65 per cent share in the PSU.
The NINL has capacity to produce 1.1 Million ton steel per annum. Because of poor capacity utilisation, the plant is passing through its worst days and on the advice of major shareholder MMTC, Department of Investment and Public Asset Management (DIPAM) is taking step for disinvestment. The Union Government also took a decision in this regard recently.
Despite proactive steps of the State Government, as MMTC and NMDC are not responding, the production in the integrated steel plant has been stopped. While the OMC has advanced Rs 174 crore to meet the debt servicing, Chief Secretary Asit Tripathy took up the issue with the Union Government to sort out the issues.
One iron ore mine was allotted in favour of NINL with about 110 million ton reserve in Koida in the year 1999 which is yet to be made operational. On the other hand supplying raw materials from open market to NINL, the MMTC has gained commission to the tune of about Rs 944 crore. It is pertinent to mention here that the MMTC has equity share of Rs 368 crore in the NINL.
It is alleged that the MMTC is not taking interest in selling out produced materials lying in the premises of the NINL. These materials include pig iron, coke breeze and steel scraps, etc.
In the meantime, distressed over non-payment of wages for months, one worker of the NINL namely Kishore Jena has committed suicide. Other employees of NINL are also passing the worst period. Around 10,000 families are depending upon the NINL directly and indirectly and due to the crisis in the plant, they are virtually in starvation.
Meanwhile, the Neelachal Executive Association(NEA) has alleged that closing down of the plant has resulted in huge revenue loss of more than Rs 2,400 crore per annum. Future of about 5,000 employees mainly of local population including nearly 1,000 displaced and land losers mostly tribal and weaker section of society is in darkness.
NEA general secretary AK Pradhan has drawn the attention of both Union and State Governments to merge NINL with any other steel PSUs like SAIL/ RINL/ NMDC. The NEA has sought intervention of Chief Minister Naveen Patnaik and Union Steel Minister Dharmendra Pradhan in revival of the plant.
