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Orissa for revaluation of NINL before merger with SAIL

Orissa for revaluation of NINL before merger with SAIL
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First Published: Mon, Sep 03 2007. 04 19 PM IST
Updated: Mon, Sep 03 2007. 04 19 PM IST
PTI
Bhubaneswar: The Orissa government has asked the Centre to revaluate Neelachal Ispat Nigam Ltd (NINL), proposed to be merged with SAIL, ahead of next round of talks on the merger in New Delhi on 5 September.
Though the state government had given its consent for the merger, it was not satisfied with the valuation made by IDBI Capital at Rs2,117 crore.
“We feel NINL’s value should be more than Rs 2,117 crore,” state Finance Minister Prafulla Ghadei said.
MMTC has a major share in NINL, the country’s largest pig iron manufacturing unit with annual capacity of 1.1 million tonne.
The annual production of the plant was 4.92 lakh tonnes of pig iron, 2.76 lakh tonnes of billets and 3 lakh tonnes of wire rod, they said.
Among other stake holders was IDBI Bank, which had invested Rs13 crore in NINL.
MMTC had alone invested Rs119 crore in the Rs399 crore project, which commenced production in 2001 at Orissa’s Duburi area in Jajpur district.
Kalinga Nagar Shramik Sangh, major trade union operating in NINL, however, opposed the state’s demand for revaluation of the plant. “Valuation done by IDBI Capital was acceptable to employees,” General Secretary Pratap Jena said.
He said the employees would not tolerate any delay in NINL’s merger with SAIL.
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First Published: Mon, Sep 03 2007. 04 19 PM IST