New Delhi, Aug 27 (PTI) State-owned iron-ore major NMDC on Friday said it has provided technical and financial assistance to Neelachal Ispat Nigam Ltd (NINL), following which mining operations at the steel maker's Mithirda iron ore mine block in Odisha have resumed.

The inaugural function was attended by NMD Chairman and Managing Director Sumit Deb, NINL Managing Director R K Jha and other senior officials of both the companies, NMDC said in a statement.

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Without providing any details, NMDC said "it has stepped in to provide technical and financial assistance to NINL for resumption of mining operations in Odisha. The operations of NINL iron ore mines at Mithirda mine block have resumed today".

NINL has permission for merchant sale of iron ore for one million tonnes per year for two years to augment the iron ore production in the state, NMDC said. The amount raised will be utilised to meet the expenses of the company.

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NMDC Chairman and Managing Director Sumit Deb said, "Iron ore mining by NINL will not only ease ore scarcity in the state but will go a long way in eliminating the financial constraints faced by NINL. NMDC extends full support to the NINL team in their new endeavour."

Odisha-based steel maker NINL is a joint venture company of four central PSUs -- MMTC, NMDC, Bharat Heavy Electricals Ltd (BHEL) and MECON -- and two Odisha government companies IPICOL and Odisha Mining Corporation (OMC), with iron ore mines for captive use.

Operations at the plant are shut down since March 2020.

The Neelachal Executive Association (NEA) had earlier said that lack of working capital has led to shut down of major units like Steel Melting Shop (SMS) and blast furnace of the plant at Kalinga Nagar steel hub. HRS hrs

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