NINL sustains loss of Rs 200 cr due to shutdown
Domestic steel producer Nilachal Ispat Nigam Limited is in serious trouble as it has sustained a loss of nearly Rs 200 crore in the past 50 days owing to shutting down of its plant in Orissa.
By PTI |
NEW DELHI: Domestic steel producer Nilachal Ispat Nigam Limited (NINL) is in serious trouble as it has sustained a loss of nearly Rs 200 crore in the past 50 days owing to shutting down of its plant in Orissa.
"NINL has sustained a loss of about Rs 198 crore in the past 50 days as there is no production in its plant since October 24 and we are deeply concerned," a senior Steel Ministry official told reporters.
The plant set up in 1982 produces 2200 tonnes of pig iron per day ad earns about Rs 2000 on per tonne. It has a blast furnace having capacity of 1950 metric cube besides a coke oven and a captive power plant.
"The company did no initiate measures to withstand the stiff competition from private producers. Even the SAIL offered to merge RINL with itself, both the Nigam and Orissa government put their foot down. This despite the fact that SAIL had proposed to invest Rs 12,000 crore to ramp up its production capacity to 4 million tonnes," the official said.
NINL Managing Director BP Modi had resigned recently reportedly citing unrest in the plant following shutting down of its blast furnace.
"We are left with no other option except to inform the Committee of Secretaries on RINL's present situation and have prepared a note accordingly for the CoS," he said.
"NINL has sustained a loss of about Rs 198 crore in the past 50 days as there is no production in its plant since October 24 and we are deeply concerned," a senior Steel Ministry official told reporters.
The plant set up in 1982 produces 2200 tonnes of pig iron per day ad earns about Rs 2000 on per tonne. It has a blast furnace having capacity of 1950 metric cube besides a coke oven and a captive power plant.
"The company did no initiate measures to withstand the stiff competition from private producers. Even the SAIL offered to merge RINL with itself, both the Nigam and Orissa government put their foot down. This despite the fact that SAIL had proposed to invest Rs 12,000 crore to ramp up its production capacity to 4 million tonnes," the official said.
NINL Managing Director BP Modi had resigned recently reportedly citing unrest in the plant following shutting down of its blast furnace.
"We are left with no other option except to inform the Committee of Secretaries on RINL's present situation and have prepared a note accordingly for the CoS," he said.
ADVERTISEMENT
Start a SIP with as low as ₹500 with ET Money App!
Download
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
ADVERTISEMENT
