Fearing closure of iron and steel units in Chhattisgarh due
to raw material shortage, Chief Minister, Mr Raman Singh, on Thursday called on
Steel Minister, Mr Beni Prasad Verma, and sought doubling of iron ore supply to
5 million tonnes (MT) from National Mineral Development Corporation (NMDC).
“Chhattisgarh is facing a crisis. Our iron and steel mills
are on the verge of closure. We have sought the Centre's intervention for
doubling it to 5 MT from present 2.5 MT on priority basis,” Mr Singh said after
meeting Mr Verma here.
All major iron ore deposits in the State are with NMDC,
which is producing about 30 MT per annum, but a major part is either exported
or supplied to industries outside Chhattisgarh while the industry in state is
on the verge of closure, he said.
“Also, there is a substantial increase in the capacity of
all units over the years in the State,” he said, adding that Mr Verma had
assured that the concerns of the industry in the State would be addressed.
Mr Verma said a meeting has been convened next week in this
connection and the Centre would extend full cooperation to the State so that
interests of units there is not hurt.
At present, there are about 100 sponge and iron
manufacturing units in the private sector in the State with a production
capacity of over 12 MTPA.
The units used to get a part of their iron ore from other
States. With restrictions put on the movement of ore in some parts recently,
these units have been left with no option than to depend on NMDC, which is the
country's largest iron ore miner.
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