The disinvestment of Neelachal Ispat Nigam Limited (NINL), which comes under the Ministry of Commerce and Industry, will lead to more direct and indirect employment generation.
The decision, which was taken at today's Cabinet meeting, will ensure a lock-in period for the existing employees and employment will not be affected. It will lead to technology and capital infusion, improve productivity and create a win-win situation for all stakeholders.
The Central government's plan to develop steel clusters in the region around NINL will further facilitate economic development and create employment opportunities and help local entrepreneurs to grow.
The benefits out of this disinvestment include an increase in the production capacity to 10 metric tonnes from the present 1.1 metric tonnes in two phases, increase in the employment opportunities multifold from a present regular employees strength of 1,540, increase in the number of outsourced employees of around 970 and employees on job contract.
Other advantages include -- the growth of MSMEs also will be large as sourcing will increase. The present stressed condition where every stakeholder including all employees is going in huge payment delays will end.
The new promoter will invest money in technology which will help it benchmark it with the global standards. This will also align with the aim of achieving 300 MT steel production capacity by 2030, of which 30 per cent is to come from Odisha.
The decision will also facilitate growth of downstream industries, and improvement of logistics. NINL will be an important member of the Kalinga Nagar steel hub.
All other facilities including skill development, higher education and steel university will get support with the capacity enhancement of NINL. Today's decision will unlock the huge potential of this quality asset, which is locked for the last 20 years.
( With inputs from ANI )