A BJD MLA on Saturday urged the Odisha government to bail out the crisis-ridden Neelachal Ispat Nigam Limited (NINL), saying livelihood of 10,000 people is depended on the company.
Priti Ranjan Ghadei,a law maker from Sukinda raised the issue in the Assembly during zero hour and sought Chief Minister Naveen Patnaik's intervention in the matter.
He said public sector enterprise MMTC Ltd, which holds 49.78 per cent stake in NINL, has decided to divest its share and allegedly stopped providing funds to the entity.
Ghadei said the severe liquidity crunch has compelled the authorities of the NINL plant at Kalinga Nagar steel hub, to suspend production.
"NINL needs immediate working capital infusion, otherwise,the blast furnace will remain shut for a long term, which will hit the steel maker badly", Ghadei said, adding as many as 10,000 people, directly or indirectly,are depended on the NINL for their livelihood.
Apart from MMTC, Odisha government through OMC and IPICOL holds 27.65 per cent share in the NINL and the state government with the substantial shareholding should extend its support to the cash-strapped company.
Though the company is facing financial crisis now, it will turnaround when the steel maker starts operating its captive iron ore mines at Koira.
"The company will save Rs 200 crore per annum on raw material front as the NINL is now getting iron ore from outside" he said.
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