The ongoing iron ore crisis in Odisha has put all the sponge
iron units dependent on iron ore form Odisha in the death kennel.
According to estimates, there are near about 128 sponge plants that are
dependent on iron ore from Odisha and the cutting down of production levels
will be a major blow to these units.
In a quest to know about the way out from the crisis, Steel
Mint spoke to a top mines owner in Odisha. Following are the highlights of the
conversation:
Shortage likely to continue
Speaking about the current production levels, he said, “We
have curtailed our production levels but cant't quantify them. Shah commission
is said to submit report post Diwali. So, till then production levels will
remain on a low scale”.
The overall production fall in Odisha as compared to last
year could be 30-40%. But its mostly because of the drastic fall in iron ore
exports, he added.
Availability of fines is sufficient for next one
month
When asked about the availability of fines, he said, “Pellets plants operating at a larger capacities have sufficient stocks to meet
their demand till the November end. So, availability of fines is sufficient to
meet the pellets plant. But the shortage of lumps has increased further as
compared to last 2 months”.
Iron ore e-auction by OMC could be a way out
Speaking about the way out from the iron ore crisis he
added, “Restriction of iron ore production to purely captive consumption will
not work out. Government has to think about the 128 sponge iron units that are
dependent of iron ore from Odisha sector. So, selling of iron ore through
e-auctions similar to Karnataka may be way out. Like in Karnataka, NMDC
conducts the e-auction similarly in Odiha, OMC may come up with the
e-auctions.”
Odisha
Govt. sets up a ministerial committee to find a long term solution
In a view
to find a long term solution to the raw material crisis of the mineral based
industries, the Odisha government has constituted an inter-ministerial
committee. The aim of the panel is to formulate a policy to provide raw
materials in a fair and equitable manner through the OMC and other mining lease
holders. Also the committee will suggest modalities for making the ore
available to the industries on a sustainable basis through long term ore
linkage arrangements. The panel will submit its report within 3 months i.e by
31 January 2013.
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