Corpus to pay salary arrears of NINL staff not to be created

BHUBANESWAR: The Department of Investment and Public Asset Management (DIPAM) under the aegis of ministry of finance will not create a corpus to pay salary arrears and other statutory dues of employees of the Neelachal Ispat Nigam Limited (NINL) in Jajpur. Minister of state for finance Bhagwat Kishanrao Karad said this in a reply to Lok Sabha on Monday.
“However, on successful completion of the disinvestment transaction, the waterfall agreement among promoters envisages priority for payment of dues of employees from the consideration received from disinvestment. NINL has informed that they had submitted an application to consortium of banks for deferment of existing loan payment schedule through suitable restructuring plan,” read the reply of the minister.
It was decided in a ministerial meeting held on November 10 last year to create a corpus of about Rs 150 crore or Rs 170 crore to pay salary arrears and other dues of the NINL employees.
The minutes of the high-power meeting released on December 1 last year had mentioned the creation of a corpus of about Rs 150/170 crore to keep NINL disinvestment ready. “This money can be used to pay salary arrears and other statutory dues of NINL till its disinvestment is completed. This money may be reimbursed to the banks first from the divestment proceeds,” read the minutes of the meeting.
NINL is a joint venture company of four Central Public Sector Enterprises (CPSEs) namely MMTC Limited, NMDC Limited, Bharat Heavy Electrical Limited (BHEL) and Mecon Limited and two state PSUs of Odisha government industrial promotion and investment corporation of Odisha limited (IPICOL) and Odisha mining corporation (OMC).
The Union cabinet on January 8 last year approved disinvestment of equity shares of NINL thereby paving way to bring in new investors through auction. Members of Neelachal Executive Association (NEA) had protested this move of the Centre. “We have not received our salary arrears pending since March 2020. If the government does not create a corpus, the process to get the salary dues may be delayed. We request the government to revive the NINL for the benefit of the state and its people,” said Ajit Kumar Pradhan, general secretary of NEA.