Odisha Govt to set up expert committee for mineral pricing policy

Odisha government will soon set up an expert committee to
frame a “pricing policy” on minerals to enable local steel makers
compete with other steel companies. 

Finance minister and chairman of the inter-ministerial group on price fixation
on raw materials Prafulla Chandra Ghadai on Thursday told 'The ET', “We
need to ensure a level playing field to local industries which are now forced
to procure raw materials at exorbitant price. We will soon set up a committee
of experts to advise Orissa government on a new pricing policy for minerals to
ensure that industries get their requirement at reasonable rate”. 

The steel units in Orissa is in a crisis like never before with almost all
plants closed. Even the Promoters have announced to hand over the keys of their
plants to the authorities for good. 

“Our steel units are competing with Tata Steel and SAIL, who
have captive mines and their cost of iron ore, chrome ore, dolomite, power,
water etc. are at very low levels. We are, however, forced to pay exorbitant
price for all kinds of minerals. This disparity is the root cause for the
historic decline of the growth in the steel sector. We have been appealing the
state government to make iron and chrome ore available at workable rates”,
said All Odisha Steel Federation president, P L Kandoi.

The proposed policy will take into account the international
prices, London Metal Exchange (LME) prices and price at which National
Mineral Development Corporation ( NMDC) is selling iron ore.
“Besides, we will look to the recommendations of the expert committee.