Bhubaneswar: Public sector miner NMDC is likely to invest in loss making PSU Nilachal Ispat Nigam ltd (NINL) in Odisha. While, the fund infusion will enable NINL to meet its immediate fund requirement to operate the plant, NMDC will be able to take control of NINL’s Iron Ore mines.
NINL a joint venture between Odisha government and MMTC, a PSU under the ministry of Commerce and Industry is currently undergoing a financial crisis. The company, which requires immediate Rs.300 Crore funding for running its operation, has already shut down several units at its Jajpur plant.
Looking at the grim scenario, Union Minister Commerce & Industries, Piyush Goyal took a meeting and advised MMTC and Odisha Government to pump in required amount of funds to NINL.However, Central PSU 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 NINL is in dire straits due to paucity of funds, State Government, as one of the major investors had requested NMDC to help in arranging funds for NINL to run its operation.
Accordingly Odisha Government requested NMDC to pump in funds for NINL so as to facilitate its operation. NMDC is interested for a Mining Lease in Odisha and NINL has a huge Iron Ore Deposit. So if NMDC invests in NINL, then its stake for a Mining Lease brightens up, feel senior officials in Department of Steel and Mines.
Sources said that NMDC has shown positive mindset to invest more in NINL though insiders say that NMDC has already invested Rs.100 Crore in NINL.Out of Rs.100 Crore Rs.49 Crore in Konarak Met Coke Limited, which is NINL and Rs.51 Crore has been pumped to NINL.After the investment of Rs.100 Crore in NINL, Central PSU 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 radar that the Odisha Government is needed to reserve a major iron ore deposit for NMDC. NMDC authorities are in touch with State Government officials in this regard and they want an iron ore deposit worth more than 200 Million Tons.
Major Iron Ore Mines like Malangtoli, Mankadnacha, Khandadhar, and others are now available and NMDC has requested Odisha Government to reserve one of these iron ore blocks for the Central Mining Major.
Now the Odisha Government will 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 will be allocated to NMDC, sources said.