Pricing Supplement No. 003 Filing under Rule 424(b)(2)
Dated March 24, 1997 Registration No. 333-22347
(To Prospectus dated March 18, 1997, supplemented by Prospectus
Supplement dated March 21, 1997)
$300,000,000
NIPSCO CAPITAL MARKETS, INC.
Medium-Term Notes
Due Nine Months or More From Date of Issue
____________________
Entitled to the benefit of a Support Agreement
Providing for the Payment of Principal and Interest by
NIPSCO Industries, Inc.
____________________
Principal Amount: $2,000,000 Interest Payment March 15 and
Date(s): September 15
Trade Date: March 24, 1997 Specified Currency: U.S. Dollars
Original Issue Selling Agent's
Date: March 27, 1997 Commission: $12,500
Interest Rate: 7.38% Net Proceeds
to the Company: $1,987,500
Stated Maturity
Date: March 27, 2007
Form: _XX_ Book Entry ___ Certified
The Medium-Term Note described in this Pricing Supplement is being
sold through Goldman, Sachs & Co., as Agent.
Prior to the date of this Pricing Supplement, no Medium-Term Notes of
the Company have been sold. Concurrently herewith, the Company is
also selling (1) $30,000,000 aggregate principal amount of Medium-Term
Notes with a Stated Maturity Date of March 27, 2017 and bearing an
interest rate of 7.86% at the initial price to the public equal to
100% of par, less a fee to the Agents equal to 0.75%; such $30,000,000
principal amount Medium-Term Notes is being sold in increments of
$10,000,000, respectively by: (a) Goldman, Sachs & Co., (b) Merrill
Lynch & Co. and (c) Morgan Stanley & Co. Incorporated; and (2)
$2,000,000 aggregate principal amount of Medium-Term Notes with a
Stated Maturity Date of March 27, 2017 and bearing an interest rate of
7.85% at the initial offering price to the public equal to 100% of par
less a fee to Goldman, Sachs & Co.,as Agent, equal to 0.75%.
Goldman, Sachs & Co.
Merrill Lynch & Co.
Morgan Stanley & Co.
Incorporated<PAGE>
