Bhubaneswar: The Odisha-based Neelachal Ispat Nigam Ltd. (NINL) would merge with the Central sector steel major Steel Authority of India Ltd.(SAIL)
If the union steel ministry’s proposal for creating a single public sector steel behemoth takes shape then NINL would merge with the Vizag-based Rstriya Ispat Nigam Ltd.(RINL) and subsequently the two would be taken over SAIL.
Both the NINL and the RINL are incurring huge losss due to poor market condition. NINL, a joint venture company of Odisha government owned IPICOL and Central sector trading company MMTC, has incurred net loss of Rs 378 crore in 2017-18. The IPICOL holds 15.29% of the stakes, while the MMTC holds 49.78% in the firm. The bulk of the remaining 34.93% stake in NINL is held by central. The Central-sector RINL has incurred a net loss of Rs 1,369 crore in FY18.
SAIL has achieved a sales turnover of Rs 58,297 crore during FY18, 19% higher than the previous year. SAIL’s losses reduced by around 83% to Rs 482 crore in FY18 from Rs 2,833 crore in FY17.