Sponge-iron units and other
consuming industries dependent on supplies of iron ore from Orissa face
uncertainty after a Government order virtually froze movement of ore from mines
in the State to other states.
The order by the Deputy Director,
Mines, Joda, Keonjhar district, comes close on the heels of the detection of
alleged irregularity in utilization of iron ore by Rashmi Metaliks and Rashmi
Cement a few weeks ago.
The Orissa Government order
requires iron-ore consuming units located outside the State to submit a lot of
documents confirming proper utilisation of the mineral from 2007-08 to 2009-10. “The verification of the entire procurement in last four years has to be
complete first,” according to an Orissa Government source.
But then verification is not
easy. The exercise has proved to be tardy. More than 100 firms that have
submitted documents for verification over two weeks ago are yet to receive
clearance. Another 100 or so, due to submit their documents shortly, keep their
fingers crossed.
Even Tata Steel – which sources
iron ore from its captive mines located at Joda, among other places – has been
subject to verification. “Our documents being perfectly in order, we're not
unduly worried but the delayed process has been a matter of concern,” according
to a company source.
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