The Odisha government may impose a cap on iron
ore production in the state. According to reports, the state has
begun work on restricting the iron ore production to about 52 million tonnes
annually.
Odisha produced about 75 million tonnes in 2010-11, a third
of the country's annual output of about 218 million tonnes.
The move, if implemented, will sharply cut iron ore availability for many
small-scale steel producers in Chhattisgarh, Jharkhand and Odisha and could
affect plans of bigger companies such as Tata Steel, Essel Mining and
Sarda Mines.
Iron ore prices may also go up, shortages may increase and steel production,
already hit by the ban in Karnataka, will be further affected if Odisha's plans
are implemented.
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