Jajpur: The Cabinet Committee on Economic Affairs giving its approval for disinvestment in Nilachal Ispat Nigam Ltd (NINL), a steel plant in Kalinganagar of Jajpur district has sparked a flurry of protests among the displaced people, public representatives, workers and trade union leaders, a report said Thursday.
Six shareholders in the plant will withdraw their shareholdings in the steel plant following the disinvestment.
Information and broadcasting minister Prakash Javadekar said after the CCEA meeting Wednesday that NINL divestment would be one-of-its-kind as it would increase employment opportunities.
The announcement by Javadekar has sparked resentment among the workers and labourers of the plant as they warned that they will not tolerate the privatisation of the steel plant. They claimed with privatisation, the dream of former Chief Minister Biju Patnaik for a second steel plant in the state will be lost.
The Union Steel Ministry formed NINL for establishment of a second steel plant near Daitari in the state in 1984 for which land acquisitions were carried out in phases from 90s. The company was jointly promoted by MMTC, IPICOL and OMC.
The state government applied before the Centre to hand over the steel firm to it, December 14, 1992. Accordingly, a memorandum of understanding (MoU) was signed between the state government and the Centre April 12, 1994 following which the latter handed over the property worth Rs 7.73 crore to the former at a token price of Re1 on the basis of certain conditions.
As per the agreement, the Centre will again take up the custody of NINL if the state government does not convert it into an integrated steel plant within five years. As time passed on, the state government signed a partnership agreement with MMTC to run the plant. Later, land acquisitions were made and production started from 2000.
A total of 668 families had been displaced by the project out of which 452 families received employment in the plant. At the time of land acquisitions, the state government had announced to turn it into a second steel plant. Rourkela Steel Plant was the only steel plant in the state then.
However, although two decades have passed since production started in the plant, the dream of turning it into an integrated steel plant is yet to be realised.
The MMTC has now decided to withdraw its investment from the steel plant while the state government is learnt to be making efforts to privatise the plant.
All the six promoters including MMTC and Mecon have decided to withdraw their stakes from the NINL. Earlier, the Kalinganagar Shramik Sangha, Nilachal Bishthapit Sangha and Kalinganagar Mazdoor Union had gheraoed the Nilachal House over privatisation.
When contacted, Babuli Purty, secretary, Nilachal Bisthapita Committee, said that they will launch a movement against the privatisation and warned the Centre and state of serious consequences if they did not desist from the move.
Mahira Purty, secretary, Kalinganagar Shramik Sangha, warned of self-immolation if the Centre and state did not stop the process. He said that the move will push the displaced tribals and workers to peril.
PNN