Jajpur, August 23 (Odisha.in) A leading labourers association Thursday demanded early merger of the state public sector steel plant Neelachal Ispat Nigam Limited (NINL) with country’s public sector steel major Steel Authority of India Limited (SAIL).
In a letter to the Orissa Chief Minister Naveen Patnaik, General Secretary Of the Kalinga Nagar Sramik Sangh Pratap Kumar Jena expressed his concern over the delay in the merger.
“If the merger is delayed then the condition of 1 million tonne (MT) NINL would worsen. Kalinga Nagar Sramik Sangh is a registered body and affiliated to the company.
The Sangh leader alleged that NINL under Metal and Mineral Trading Corporation (MMTC) is not receiving impetus for steel making as the metal major; MMTC is more interested for trading.
So far the issue of low valuation of shares is concerned the trade union has reminded that NINL was handed over to Government of Orissa by the Centre for a token consideration of Rs.1 only in April 1, 1994.
He has asked the show equal graciousness by handing over the plant to a Government of India concern and not to loose sight in the quagmire of lower valuation of shares.
Hundreds of labourers of Kalinga Nager Mazdoor Union led by its President Biswajit Das gheraoed Monday the NINL Managing Dirctor, B.P. Modi and other high officials in the Kalinga Nager demanding early merger of the plant.
The Neelachal Executive Association (NEA), the officers’ organization of NINL has also sent missive to the Chief Minister requesting him to take immediate steps for the merger of the NINL with SAIL.
NEA has pointed out that once the merger takes place than SAIL will infuse funds for an Integrated Steel Plant as the Steel Major is on a massive expansion mode.
How ever vested interest groups are trying to foil the Cabinet decision for the amalgamation of the both entities, alleged General Secretary of NEA Mr. A. K. Prusty.
NINL is a joint venture between MMTC and the Orissa government. While, MMTC owns 50 per cent stake and 26 per cent of the Orissa Government is for sale.
A Joint Action Committee of the Central Government has asked MMTC to hand over NINL to SAIL.
The Committee is of considered view that the merger of Neelachal Ispat Nigam Limited with SAIL is the only way for survival of the company.
Accordingly MMTC requested IDBI to evaluate the shares of NINL. IDBI has evaluated the value of share to Rs.27.62. So the total value of Equity Capital of NINL has been estimated at Rs.1199 crore for all its 43.62 crore of Shares.