A delegation of Indian Steel Association (ISA) on 04 Sept’15 met Odisha chief minister Naveen Patnaik and requested his intervention to overcome challenges faced by steel industries in the state. The delegation comprised of Sanjay Singhal, CMD, Bhushan Power & Steel Ltd, Naveen Jindal, Chairman, Jindal Steel & Power Ltd (JSPL), JB Mehra, Director of Essar Steel, Sanak Mishra, Secretary General, ISA, Rajdeep Mohanty, Resident Director, Jindal Stainless Ltd and senior functionaries of other member companies.Steel sector in Odisha has attracted huge investment and created employment for over 2 lakh people in the state. In 2014-15, the industry has contributed about INR 130 bn to government exchequers. Besides, more than INR 3 bn was spent on peripheral development activities in the year.
The delegates pointed out that the state’s steel sector is facing high input cost of raw material, logistics constraints, high utility charges, such as water charges, contribution towards water conservation fund and problems in raw material security for end use plants. Need of a strong policy framework to promote eco-friendly and mineral conservation projects like beneficiation and pelletisation plants as well as level playing field for steel sector in upcoming non-coal mining auctions were also discussed threadbare.
“We requested for immediate intervention of the chief minister to address the issues in the interest of the state and its growth”, said Sanak Mishra.
The delegation requested the chief minister to align royalty as per actual grade and size of iron ore as mandated in MMDR Act and followed by all other states, identify and strengthen mineral logistics corridors by improving road conditions, adding critical infrastructure and eliminating constraints like day time embargo. The ISA representatives urged government intervention for completion of critical railway projects, fast tracking of national waterways projects and incentivising eco-friendly long distance slurry pipeline projects. They also appealed the state government to reserve mega non-coal blocks for existing state based end use plants as per Mineral Auction Rules 2015 and to give them preference in auction process.
To ensure level playing field amongst the players who have invested thousands of crores in the state and others, lower rate of royalty may be recommended to cater for industries without existing captive mineral concessions. Transparent price mechanism for iron ore lumps and fines should be adopted. Preference should be given to existing value added end use plants over merchant mining in evaluation process for upcoming non-coal mining action. ISA also requested the government to review and levy water charges as per actual withdrawal and waiver of water conservation fund.
“We have full faith in Odisha government and we are very optimistic that the government will take necessary steps to resolve challenges of the industry through appropriate administrative/legislative measures,” said Naveen Jindal.
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