BHUBANESWAR: The State Government on Monday decided to ask the Minerals and Metals Trading Corporation (MMTC) not to charge trading fee from Nilachal Ispat Nigam Limited (NINL) to make it more profitable.The decision was taken ahead of the crucial Board meet of the NINL on Tuesday at a meeting attended by Finance Minister Prafulla Chandra Ghadei, Steel and Mines Minister Raghunath Mohanty, Chief Secretary Bijay Kumar Patnaik and senior officials of the State Government.The Steel and Mines Minister told this paper that the State Government would bring a proposal in the Board meeting for takeover of NINL by the Orissa Mining Corporation (OMC).The Finance Minister told mediapersons after the meeting that the MMTC, which had invested ` 190 crore in NINL as the major stakeholder in the joint venture, had already taken ` 400 crore towards trading charge on sale and purchase of the company. Stating that NINL had been incurring losses due to inadequate investment, Ghadei said MMTC should hand over the trading assignment to the company (NINL) in order to improve its financial condition.Sources said the MMTC has so far invested ` 370 crore out of which ` 180 crore was meant for expansion work.The State Government is yet to get any benefit from the project even as it invested ` 105 crore during the initial stage, Ghadei said and added NINL was also given an iron ore reserve in the State.NINL’s record on periphery development and corporate social responsibility (CSR) activities and employment for local youths is also not satisfactory, the Minister pointed out.NINL is a joint venture among MMTC (49 per cent), the State Government (27 per cent) and other stake-holders. The State-owned Industrial Investment Promotion Corporation of Orissa Limited (Ipicol) and OMC have funded the 27 per cent on behalf of the State Government.The State Government also felt that adequate measures had not been taken to expand NINL even as the plant has more than 2,500 acre of land and a dedicated iron ore reserve.Ghadei said the State Government will propose expansion of NINL’s capacity to 5 mtpa from the existing 1.1 mtpa. He said while private steel industries are making huge benefits from the boom in the steel sector, NINL has failed to cash in on the opportunity.Ghadei said the State Government would also ask the stake-holders to invest more in order to make NINL a profitable venture.
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