While agreeing to a strategic disinvestment of the Kalinganagar-based Nilachal Ispat Nigam Limited (NINL), the State Government has asked the Centre to run the plant properly till disinvestment takes place.

A senior State Government official said that as the Union Government had asked the Odisha Government for its concurrence of the proposal, the State Government has given green signal to the latter to go ahead for the strategic disinvestment.

Sources said Chief Secretary Asit Tripathy has informed the decision of the State Government in this regard to Union Secretary for Disinvestment and Public Asset Management (DIPAM) Atanu Chakraborty, who had recently requested the State Government to take a decision in this regard immediately.

While concurring with the proposal, the State Government has strongly urged the Union Government to run the plant through a top Central public sector undertaking (PSU) like SAIL, RINL and others as the plant is facing closure due to paucity of funds after the MMTC expressing its inability to pump in resources.

The NINL is running a one-million-tonne-capacity integrated steel complex, which has a potential of 10 million tonnes per annum, but the company would require a substantial capital infusion for tapping its full capacity. And its major promoter MMTC has said it cannot pump in more funds for achieving its full potential.

The NINL is a joint venture company with the shares of Central PSUs MMTC, NMDC, MECON and BHEL and State undertakings IPICOL and OMC.

The State Government through OMC and IPICOL holds a 27.65-per cent share. As one of the major shareholders, the State has asked the Centre to run the plant till the disinvestment process is complete.

As the State Government has concurred with the disinvestment proposal, now Government of India will disinvest all the stakes of these PSUs through a common transaction for strategic sale through the extant approved procedure in place.

This would facilitate infusion of capital by a strategic buyer, which will generate further employment opportunities and contribute to the overall growth in the State, said sources.

The Union Government has put in place a transparent three-tier decision-making mechanism with the Cabinet Committee on Economic Affairs (CCEA) at the apex level.

The State Government has categorically said that as hundreds of workers and other people are dependent on the NINL, the plant should not be closed down before disinvestment.

It is apprehended that if NINL plant is allowed to shut down, it is going to affect around 10,000 people’s livelihoods directly and indirectly. So, the Union Government must take steps to run the plant so that its share value does not nosedive and shareholders are not put to loss, said a State Government official.