Centre to examine Odisha proposal for SAIL take over of NINL: Tomar

Says the matter was discussed in detail with the chief minister and officials

The Centre would seriously examine Odisha government's proposal for steel behemoth SAIL taking over Neelachal Ispat Nigam Limited (NINL), Union Steel and Mines Minister Narendra Singh Tomar said today.

"Chief Minister Naveen Patnaik gave some suggestions when we met earlier in the day. One among the proposals was that SAIL should take over NINL," Tomar told reporters here.

Stating that there was a detailed discussion on the proposal with the chief minister and officials, Tomar said it will be examined and considered seriously."

On MMTC, which owns the majority stake in NINL, the Union Minister said the matter would be discussed across the table and some mechanism evolved.

Since the suggestion for merger has come from the Chief Minister, the Centre would take appropriate steps in this regard, he said.

NINL, jointly promoted by MMTC Ltd, Industrial Promotion and Investment Corporation of Orissa Limited (IPICOL) and other government agencies, has an 1.1 million tonne iron and steel plant at Kalinganagar, Duburi in Odisha's Jajpur district.

MMTC, which owns the majority stake in the steel company, is under the administrative control of the Commerce Ministry.

The Union steel ministry in its Outcome Budget for the current fiscal has reportedly stated recently that SAIL has taken up with Ministry of Commerce for possibility of acquiring majority stake in NINL in Odisha.

NINL also produces LAM coke used by the steel industry. It has a 62.5 MW captive power plant to meet captive needs.

The Steel Ministry said the acquisition will facilitate realisation of the full potential of NINL as a profitable integrated steel plant.