NINL employees not paid salary since march 2020 – write to the Finance Minister for help

Report from Shri Ajit Kumar Pradhan, General Secretary Neelachal Executive Association, Neelachal Ispat Nigam Limited

So far 17 employees of Neelachal Ispat Nigam Limited (NINL) have died & 10,000 continue to suffer due to non-payment of salary since Mar 2020. NINL employees made fervent appeal to the Finance Minister on 11 October 2021 to release their salary arrears and urge her to save NINL by merging it with SAIL/RINL/NMDC. A similar request for release of pending salary was made on 27 July 2021 but got no response from the government.

DT: 11.10.2021

To,

Smt. Nirmala Sitharaman,
The Hon’ble Union Minister of Finance& Corporate Affairs,
North Block, New Delhi-110001,
Government of India.

Sub: Request for your Urgent Intervention in releasing arrear salary of employees of Neelachal Ispat Nigam Ltd (NINL) & resumption of plant production by merging with SAIL/RINL/NMDC like captive mines operation started with the help of NMDC.

Ref:

1. Minutes of Meeting Dt 10.11.2020(Copy enclosed).
2. Our earlier letters Dated 27.07.2021 & 01.04.2021 and your reply through the then DGM(HR&IR),NINL dated13.4.21(Copy enclosed).
3. Ministry of Mines, Govt. of India order dated.09.03.2021 & Press Release of NMDC Dt: 27.08.2021 (Copy enclosed).

Respected Madam,

We the employees of Neelachal Ispat Nigam Ltd (NINL) would like to draw your kind attention towards non-payment of salary/remuneration for last 19 months, i.e., from March 2020 despite Govt. of India’s active instructions from time to time.

• On the basis of CCEA approval dated 08/01/2020, now NINL is under disinvestment carried out by DIPAM under your ministry.
• Madam, directly more than 10000 employees & workers and around 40000 people indirectly are dependent on NINL. The present prevailing situation has on the verge of destroying the future of our children, family and dependents.
• It may not be out of place to mention here that this Covid-19 pandemic along with financial distress of our organization has broken back bone of each and every employee.
• As you are aware that a decision has been made on dtd.10.11.2020 under the joint Chairmanship Hon’ble Minister of Commerce & Industry and Hon’ble Minister of Steel 2020 for disbursement of employee’s arrear & salary:
  1. Creation of Corpus. (Point 8.iv.a of Memorandum dated. 01 Dec 2020)
  2. Immediate starting of operation of its captive Iron Ore mine, selling of iron ore.
  3. Selling of inventory lying for long period in NINL premises.
• In order to provide relief to the employees of NINL Govt. of India Ministry of Mines on dtd.09.03.2021 has granted permission to sale of 50% iron ore of production capacity of our captive mines for purpose of release of salary/wages and statutory dues (A copy of the order dtd.09.03.2021 is attached herewith). On Dt: 27.08.2021 NINL has resumed mining operation with the help of NMDC (Press Release of NMDC was enclosed for kind reference). Regarding creation of corpus, this has not created yet. Though NINL employees are regularly doing their duty and working hard but till date we are suffering unbearable agony and pain for not able to sustain bare minimum financial needs of our families & their health hazards.
• By selling finished products at NINL and iron ore from mines employee’s dues should be cleared immediately for sustenance of the dependents & families.

The following are some of the points/agonies suffered by each and every employee and their family members brought to your kind notice:

1. Non-payment of salary for last 19 months.
2. Non-payment of statutory dues such as PF, ESI and gratuity.
3. There is no corporate medical tie-up for employees and their family members since last two years.
4. Non-payment of outdoor medical reimbursement.
5. Non-payment of legitimate Perks and Allowances (HRA, LTC & LLTC, Vehicle maintenance & reimbursement of tuition fees).
6. Non-payment of loan deducted amount to concerned banks.
7. Difficult to sustain fees for ongoing children’s education.
8. No welfare benefit for any employee and their family members. Also no sustenance benefit for widow and kith & kin of deceased employee.
9. Employees are becoming defaulters for non-payment of monthly loan installments.
10. Destruction of social security of the employees and their family members due to default in payment of Insurance Installments.

• Towards dispatch of materials lying at plant premises, M/S MMTC & NINL has received approximately Rs 156 Crores. But, only 72 Crores has been disbursed towards part salary up-to October’20. Madam, at present material/ finished product is being dispatched by violating/disobeying the agreement made on Dt: 09.06.2021 between NINL management and district administration. MD NINL, DGM I/C (HR/IR), CSO NINL, ADM Kalinga Nagar, Addl. SP Kalinga Nagar & IIC kalinga Nagar were agreed and signed the document in presence of Honourable MLA, Sukinda, Odisha that “@ 50% of the basic and DA salary shall be paid against each rake of LAM coke dispatch prier to release of rake from NINL premises” (Copy enclosed). The above line indicates as per the prevailing market rate of finished product Rs 3.5 crore (approx) should be released as part salary after the revenue generation but before dispatch from NINL site of Rs 6.5 crore (Approximate cost of one rake consisting of 2200 Metric Tonne of LAM coke).
• In the month of October’2021 Rs 9.21 crores (Inclusive of taxes) have already received for dispatch of material and the same also is going on in full swing. As per the above agreement made by MD NINL part salary in the form of Basic & DA should be released before dispatch, but in the ongoing festive season we haven’t received a single rupee.
• DIPAM has failed to achieve all time lines in this disinvestment process since inception. Already data collection & uploading, providing VDR and physical verification in the due diligence process have completed the process but still the process may not be completed by this financial year 2021-22.
• At present MMTC is struggling hard even to survive after the defeat of Anglo American Metallurgical Coal Pvt Ltd Vide Civil Appeal No: 4083 of 2020 at Delhi Court. MMTC assets such as office buildings at various site are on auction for further proceedings. MMTC neither sale the finished product in huge quantity to meet the salary requirement nor taking any decision to resume the production of plant.
• If resolution towards payment of salaries will not be settled on a war footing basis this may escalate to untimely loss of life and for which Govt. of the day will be held solely responsible as already 17 nos of employees have expired due to non-payment of salary and want of medical facility since March’2020.

In view of the above we solicit your kind & immediate intervention to bring out 40,000 people from the unbearable agony and pain by making arrangements for payment of arrear and dues. Suitable instructions may be issued for carrying out immediate relief.

More so MMTC while making desperate effort to come out of their pauper-ship is not keen for improving the ambience in NINL plant by disbursing salary/wages as per the commitment dated 09.06.2021 especially the cohesive fabric of master – servant relationship. Hence it will be in the best interest of GOI, DIPAM, NMDC & NINL to keep MMTC secluded from the process of decision making and entrust the same to NMDC and to allow any +leading steel sectors having core competency like SAIL/RINL/NMDC to remain NINL as a going concern.

We look forward to an appointment to appraise the above matter.
With profound regards,
For NINL collective.

Ajit Kumar Pradhan
General Secretary (NEA), NINL

Enclosure as above.

Copy for Kind information and necessary action:

1. Shri Narendra Damodar Das Modi, Hon’ble Prime Minister of India.
2. Shri Amit Saha, Hon’ble Home Minister.
3. Shri Piyush Vedprakash Goyal, Hon’ble Union Minister for Commerce & Industries.
4. Shri Ram Chandra Pratap Singh, Hon’ble Union Minister for Steel.
5. Shri Naveen Pattnaik, Hon’ble Chief Minister, Odisha
6. Shri SomParkash, Hon’ble Minister of State, Ministry of Commerce & Industry.
7. Smt. Anupriya Singh Patel, Hon’ble Minister of State for Commerce and Industry.
8. Shri Bhagwat Kishan Rao Karad, Hon’bleMinister of State for Finance.
9. Shri Pankaj Choudhary, Hon’ble Minister of State for Finance.
10. Shri Faggan Singh Kulaste, Hon’ble Union Minister of State Ministry of Steel,
11. Shri Promod Kumar Mishra, Hon’ble Principal Secretary, PMO.
12. Chief Secretary, Govt. of Odisha
13. Secretary Commerce, GOI
14. Secretary steel, GOI
15. Secretary Divestment
16. Promoters of NINL.
17. Addl Secy & CMD MMTC.
18. Promoters & Directors of NINL
19. District Magistrate & Collector Jajpur, Govt of Odisha.
20. MLA, Sukinda, Govt of Odisha.
21. SP Jajpur, Govt of Odisha.
22. ADM , Addl SP & IIC Kalinga Nagar, Govt of Odisha.

For NINL collective.

Ajit Kumar Pradhan
General Secretary (NEA), NINL