Bhubaneswar: Odisha government is proposing to integrate three of units to develop Nilachal Ispat Nigam Ltd.(NINL) into a mega steel plant.

Sources in the government told India Whispers that a proposal is under consideration to integrate the Kalinga Iron World Ltd(KIWL) in Keonjhar district and the Idcol Ferro-Chrome Ltd. (IFCL)Plant in Jajpur district would be revived to be integrated with the NINL.

The three State-owned plants have the legacy of the legendary leader Biju Patnaik. However, while the KIWL and IFCL has been shutdown, the NINL is struggling to keep its blast furnace burning due to working capital problem.

The government is proposing to develop the KIWL to manufacture iron ore pellets for the NINL plant. The ferro-chrome from the IFCL would be used by NINL for stainless steel making.

The government is proposing to bring in OMC, which is rich with huge cash reserves, to finance the revival plan.

Currently, NINL is facing shut down of its blast furnace as the required working capital is not coming in. The Central-sector star trading company MMTC Ltd., which is holding 49.78% stakes in the steel company, is not pumping in the working capital.

MMTC, meanwhile, has informed the SEBI that it is considering disinvestment of its equity in the NINL. The MMTC company secretary G.Anandanarayanan has filed a disclosure under the Regulation 30 of SEBI(LODR) Regulation, 2015 stating, “MMTCL Limited considers disinvestment of MMTC’s equity in the JV company M/s Neelachal Ispat Nigam Ltd.”

The government of Odisha through OMC and IPICOL has 27.65% stakes while NMDC has 12.87% leaving the rest 9.74% to other financial institutions and supply vendors.

Jajpur MLA Priti Ranjan Ghadei has urged the state government to consider the revival of the NINL.

Ghadei told India Whispers that the working capital crunch has compelled the blast furnace for blow down and hence suspension of production. Lack of immediate infusion on working capital may result in logn term shut down of the furnace, he cautioned. He has suggested that the SAIL may be requested to take over the management of NINL to overcome the crisis.

NINL which has captive mines at Koira and Steel Meting Shop is currently producing its own brand TMT Bar from Junly, this year.