The Odisha government has made some relaxation
in its executive order that had mandated reserving of 50% of iron ore produced
by the stand alone miners for the local iron and steel industry. As per the new
order, the left out stocks meant for consumption by local units in a month
would be added to the next month’s earmarked quantity.
Meanwhile, the All
Odisha Steel Federation (AOSF) has opposed the dilution of original decision
taken in December last year. AOSF president P. L. Kandoi has alleged that the
state government has taken this decision favouring the miners.
In a letter written to Principal State Secretary of Steel and Mines, he said
“The Government has issued this letter without studying its implications. If miners are allowed to sell 50% to outside party without pre-condition, they do not bother to sell to Odisha units. If 50% ore is not sold their Fixed Deposit will not increase for the time being, but the pressure on them to bring down to fair price for Odisha units is diluted. This letter has zeroed the seriousness of Government in their efforts to save the steel sector, who is victim in the hands of miners.
Government has forgotten that by holding ore, the miners will not loose except increasing in their Fixed Deposits, but the steel units will die. It is obvious that such a system opens back door for open sale or permission to steel companies outside the state, in future, claiming that 50% reservation is on higher side. “
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