MMTC to sell NINL's steel billets through online auctions on Jan 17

State-run trading entity MMTC Ltd has proposed to sell steel billets manufactured at Neelachal Ispat Nigam Ltd's (NINL) steel plant at Duburi (Odisha).

NINL is jointly promoted by MMTC and two Odisha government PSUs with MMTC being the top equity holder with a share of 49.9 per cent.

Steel billets are envisaged to be sold through online auctions on January 17. NINL has started production of steel billets from its Steel Melting Shop (SMS). The foray into steel production is part of NINL’s product diversification strategy to position itself among the top steel producers in the country. NINL, the country’s biggest producer and exporter of pig iron is on the turnaround trail after the successful completion of its blast furnace capital repair work in April last year. The addition of steel billets to its varied product portfolio would help fuel the turnaround plans and inch closer to making net profit.

With the steel market looking up, NINL expects to earn maximum net margin on billet by reducing the cost of production. Plans are also afoot to produce TMT and wire rods.

MMTC with an equity of 49.9 per cent is the largest stakeholder in NINL. The Odisha government is represented through two of its PSUs- Odisha Mining Corporation (OMC) and Industrial Promotion & Investment Corporation of Odisha Ltd (Ipicol) which between them hold 26 per cent stake.