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Ghadai thanks Naveen for taking of NINL issue with Centre

Report;Akshya Rout,Odishabarta

Jajpur, July 15: Former finance minister Prafulla Chandra Ghadai has thanked Odisha chief minister Naveen Patnaik for taking up the issue of Neelachal Ispat Nigam Limited (NINL) plant at Kalinga Nagar in Jajpur district with the Union government for capital infusion into the unit to keep it operation.

In a press statement, Mr Ghadai on Saturday said former chief minister Biju Patnaik who had acquired NINL facility at Re 1 in 1994 wanted to make it a three-million tonne plant. However, due to the careless attitude of the Metals and Minerals Trading Corporation (MMTC), a Central public sector unit and one of the three promoters, - the plant  is passing through serious conditions at present.

Mr Ghadai, while praising the chief minister for urging the Union commerce and industry minister Nirmala Sitharaman to ask MMTC to pay equity of Rs 149 crore as its share of equity as stipulated by bankers  as a part of refinancing of the project loan, - said the delay by the Central PSU was aggravating the financial conditions of the unit.

“While Tata Steel, Visa Steel, Jinal and Mesco are running with profits, what ails NINL plant?” questioned Mr Ghadai.

Chief Minister Naveen Patnaik on July 11 had urged the Union minister to instruct MMTC to provide additional equity support for the survival of Neelachal Ispat Nigam Limited (NINL).

In a letter to the Union Minister of State for Commerce and Industry Nirmala Sitharaman, Patnaik said, “I request you to instruct MMTC to provide additional equity support to NINL at the earliest in the interest of the survival of NINL.”.

It may be mentioned here that the NINL integrated steel plant is jointly promoted by MMTC and two state PSUs Odisha Mining Corporation (OMC) and IPICOL.

The joint venture needs infusion of an additional equity of Rs 300 crore to overcome the acute financial crisis. The state government has already accorded its approval for infustion of equity of Rs 80 crore since last two years as pro-rata share by OMC.

Equity of 49.78 per cent of the NINL is held by MMTC, the state PSUs together hold 27.61 per cent of its equity.

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2018-04-21 13:18