Odisha government has revised pricing formula for Iron ore supply to State based Industries under 50:50 rule.
Odisha government has revised the pricing formula for supplying of raw material to state based units under 50:50 rule. As per the new formula, pricing of raw material will be decided monthly on the basis of price the lessees sold in previous month. Previously, minerals were sold as per 4-5 month old IBM published price. The miners were opposing this pricing formula saying that the IBM price does not reflect the actual market price.
“The government has revised the pricing formula for supplying of raw material to state based industries. As per this new formula, prices would be decided monthly on the basis of the previous month’s price. The industry and mines have shown positive response to this new formula”, said Deepak Mohanty, after a coordination meeting of miners and industries convened by the Odisha Steel & Mines department. The meeting was chaired by Steel & Mines Secretary, RK Sharma.
50:50 Rule
Odisha government had made it mandatory for merchant miners to reserve 50% of total production for state based industries in 2012. Against which several petitions were files in Odisha High Court and the Supreme Court. However recently, the Supreme Court has validated 50:50 rule.
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