NINL, a public sector steel company jointly promoted by MMTC and Government of Odisha (IPICOL and OMC), will re-open its Steel Making Shop (SMS) on 15 Oct’15. NINL’s SMS was commissioned in 2014 but the company had to stop production due to adverse market conditions, said Mr Ved Prakash, CMD MMTC and Chairman NINL.
He added that MMTC as the managing promoter has provided all managerial, financial and marketing support for smooth functioning of NINL. In addition to the working capital support of INR 10 bn, MMTC has also provided corporate guarantee of INR 14.70 bn for availing loans from various banks, FIS and bonds from the security market at competitive rates.
On the other hand, OMC being another promoter has recently provided a corporate loan of INR 1.70 bn to NINL. The company has planned to expand its steel capacity to 5 MnT in two phases and in the first the capacity will be augmented to 2.2 MnT from 1.1 MmT today.
Last week (24 Sept’15) Odisha chief secretary along with secretary steel and mines, MMTC CMD held a meeting to review the present status of NINL. It has been decided in the meeting that both the promoters will provide necessary financial assistance to NINL for early completion of expansion plans.
Odisha government has already recommended to the Union Environment and Forest Ministry for grant of stage-1 forest clearance for captive mines in Sundargarh and Keonjhar district. The government will pursue the matter with the ministry for early approval of the stage-1 clearance. NINL plants to operationalize the captive mines from Oct’16, which will end its raw material problems and at the same time would reduce its cost of production.
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