Director of Mines, Odisha, passed a government order yesterday in which it has instructed to suspend or cancel the registration of transporters and mineral carrying vehicles who involve in transport strike in the state.
This is with reference to the transport strike by the Association of Transporters, Loaders and Tippers of Sundergarh and Keonjhar districts of Odisha. The transporters had gone on an indefinite strike from 20 July’15, which devastated the mineral transportation by road.
Transporters resumed operations from 28th July after government officials indicated cancellation of licenses. A transporter based in the region said, “Government has restricted the strike and there is fear amongst transporters to oppose it as it could lead to cancellation of their licenses. Government is likely to introduce new transport freight from 15 Aug. There is also pressure from te government on private miners to transport the material to siding in there own vehicles. ”
Proposed transport freight and prevailing transport freight – Odisha government has fixed a ceiling charge of INR 5.70 to 6.00/MT per km of a max on transport rates for domestic movement, which is currently around INR 9.00-12.00/MT per km.
The transport strike badly impacted the movement of minerals. The strike hit iron ore dispatches by about 5,00,000 MT in just eight days. Apart from mineral transportation, it also negatively impacted state revenue and employment in mines.
Odisha govt. passed an order under ESMA to prohibit strikes
The government of Odisha in exercise of its powers under the sections of ESMA (Essential Services Maintenance Act, 1988) passed an order to prohibit strikes by transporters Association on 28 July’15. The order shall remain in force for a period of 6 months w.e.f date of issue of order.
Link to the Govt. order on prohibiting strikes on mineral transportation
To find out more about the impact of MMDRA on Indian mining industry and NMDC’s supply of the key raw material in domestic market, join us at India’s largest business conference on Iron ore, Pellet & DRI to be held in Kolkata on 13 & 14 August 2015 at Hyatt Regency. The summit is expected to be attended by 250+ companies from across the world. Register Now
Get answers to
- What will be the global iron ore prices, demand & supply scenario?
- Will Iron ore prices in China revive soon?
- How will the new MMDR Bill (2015) change the dynamics of the Indian mining industry?
- Will the export duty cut on Iron ore to 10% benefit the Indian exporters?
- What are NMDC’s production growth plans and supply in domestic market?
- Will Indian steel makers continue to import in FY16?
- What is the potential for Indian Pellet in Iran?
- How will coal block & linkage auctions impact DRI industry in India?
- Will Indian DRI dependence increase on South African and Australian Coal?
Leave a Reply