Hard times for IDCOL Ferrochrome and Alloys Ltd (IFCAL) over raw material crisis
Facing with severe raw material crisis, the losses of state owned IDCOL Ferrochrome and Alloys ltd. (IFCAL) has been mounting with every passing day. Due to high raw material cost, the production cost of the Jajpur based plant has significantly exceeded the market price of Ferrochrome.
The plant has a capacity of 20,000 tonnes per annum which includes 12,000 tonnes of High Carbon Ferrochrome and 8,000 tonnes of Low Carbon Ferrochrome. However, owing to raw material scarcity, the plant is producing much below its capacity. The plant needs 48,000 tonnes of Chrome ore per annum. However, it manages to produce hardly 2 thousand tonnes of Chrome ore per month and it procures rest 2000 tonnes from OMC (Orissa Mining Corporation) at market price.
Due to high raw material prices and input cost the cost of production has exceeded the market price of Ferrochrome thereby severely affecting the competitiveness of the company and the loss of the plant has touched Rs.6 crore, according to Mr Babaji Charana Sahu Managing Director of the company.
The project has its captive Chrome mine at tailing about 60 km from the plant and has estimated deposits of 63.40 lakh tonnes of High grade chrome. However, the company is yet to get forest clearance to open the 3rd quarry of the mine. The company was set up in the year 1969 and during these 44 years it has finished up the Chrome deposit from the 1st and 2nd quarry.
Now the company has requested the state government to take necessary steps to expedite the process for getting the forest clearance for the 3rd quarry, which has rich deposits of high quality Chromite, he said.
Though, the Odisha government has already decided to sale the plant and public sector steel major SAIL has expressed interest in acquiring the company, no progress has been made so far.
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