Bhubaneswar: With a view to solve the raw material crisis of the state based steel units, the Odisha government has decided to supply raw material through the Odisha Mining Corporation (OMC). State Cabinet on Monday approved the Long Term Ore Linkage Policy to state based units.
“The state government has decided to supply raw material to state based mineral based units through the state owned Odisha Mining Corporation (OMC),” Odisha Chief Secretary, Mr. Gokul Pati said after the meeting on Monday.
In order to achieve the objective detailed ramp up plan for OMC’s major mines for enhancement of Iron ore production has been approved by the state government.
OMC’s Iron ore production will be 5.5 MnT during FY15, which will be scaled up to 7.9 MnT in FY16. The company will produce 9.5 MT Iron ore in FY17 and in FY18, it will produce 15 MnT and by FY19 it will be scaled up to 21 MnT. Stating that the decision will solve the problems faced by the MoU signed companies, the Chief Secretary said the long term ore linkage will be effective for five years. The state government has already signed MoUs with 49 companies for setting up steel plants in Odisha, of which 31 projects have already started production, fully or partially.
“50% of Iron ore production in Odisha is to be earmarked for long term linkage with MoU signed companies which have already been established and started full or partial production,” Mr. Pati said.
The quantity of ore to be assured to an industry under linkage policy will be determined by the committee comprising of officials of Industries Department, Director of Mines, OMC and IPICOL (Industrial Promotion Infrastructure Corporation of Odisha Limited).
“Price of such long term linkage will be fair market price as discovered through National E-auction conducted by OMC for the remaining 50% quantity,” Mr. Pati said.
In case of Chrome ore, the Chief Secretary said, 70% of ore production will be earmarked for long term linkage. The cabinet has also approved the model sales agreement for long term linkage and price, he said.
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