By Bizodisha Bureau, Bhubaneswar, July 11, 2017 : Odisha Chief Minister Naveen Patnaik today urged the Centre to ask MMTC for an additional equity support to NINL for survival of the loss making joint venture undertaking in Kalinga Nagar industrial hub.

In a letter to union commerce and industry minister Nirmala Sitharaman, Patnaik sought infusion of fund for the revival of the fortunes of the ailing Neelachal Ispat Nigam Limited (NINL).

Jointly promoted by MMTC Limited, a central PSU under the union ministry of commerce and industry, and two state PSUs – OMC and IPICOL – of Odisha government, the NINL has been incurring losses since 2012-13

Patnaik urged Sithraman to provide additional equity support to NINL at the earliest in the interest of survival of the integrated steel plant.

MMTC holds 49.78 percent of the equity of NINL while the two state PSUs hold 27.61 percent of its equity.

The NINL has undertaken various measures – such as refinancing its existing project loan under the refinance scheme of RBI, in the financial year 2015-16, Naveen said in the letter.

While sanctioning the scheme, bankers have stipulated a precondition that the promoters have to infuse additional equity of Rs 300 crore. At this stage, the company needs immediate equity infusion to overcome the acute financial crisis, he stressed.

The state government is deeply concerned about the survival and growth of NINL, which employs about 3700 workers. On its part, the state government has executed a mining lease for iron ore mine in favour of NINL in order to provide assured supply of iron ore, he added.

The government of Odisha has already accorded its approval for infusion of equity of Rs 80 crore since last two years as pro-rata share by OMC, the disbursement of which is subject to the infusion of equity of Rs 149.34 crore by MMTC Ltd. as their share. However, the MMTC is yet to bring in its share of the additional equity support, the letter said.