Odisha 50:50 Rule: First List of Allocation

Odisha government has released first list of Iron ore allocation to state based units under its gazetted notification dated 26 Jun, 2014. Government has specified quantity & quality of material based on quarterly requirement applied by state based units.

List of Iron Ore Allocation to State based Companies for Period ending 31 Mar’15

Company Name Material Allotted Quantity
Sri Madhu Ispat Lump 24,000
Patnaik Steel Lump 44,000
Ganesh Sponge Lump 36,000
Agrasen Sponge Lump 24,000
Pooja Sponge Lump 15,000
Shiv Metaliks Lump 24,000
Prabhu Sponge Lump 24,000
Jay Iron & Steel Lump 24,000
Pro Minerals Fines 180,000
Maa samaleswari Industries Lump 24,000
Balaji Metaliks Lump 12,000
Suraj Products Lump 18,000
Sponge Udyog Lump 24,000
Vikram Pvt. Ltd. Lump 24,000
Hari Sponge Lump 27,000
K J Ispat Lump 12,000
BRG Iron & Steel Lump 24,000
Viraja Steel Lump 6,000
Bhushan Steel Lump 600,000
SMC Power Lump 72,000
Arya Iron & Steel Fines 300,000
International Minerals & Trading Fines 450,000
Essar Fines 1,750,000
BRPL Fines 130,000
JSPL Fines 434,000
Total 4,302,000

Quantity in MT

For copy of allocation list: Click here

What is 50:50 Rule?

On 5 Dec’12, the Odisha Steel & Mines department had issued notification directing all miners to reserve 50% of their monthly Iron ore output for state based companies after captive consumption, citing mineral development and other rules contained in the MCR as well as raw material need for local steel companies, as the cause for such action.

Many miners had moved to the Odisha High Court challenging the legal validity of the notification; terming the restriction of mineral sales, a breach of the Constitution.

Hearing on writ petitions filed by AOSF (All Odisha Steel Federation) and FIMI (Federation of Indian Minerals & Industries), the High Court said the government has the right of pre-emption on minerals as mentioned in the section 27 of MCR and hence the notification was legally valid.

Further, the High Court asked the state government to form a mechanism, which will define equal supply to state based companies at a fair price. Thereafter, the state government issued a gazetted notification, which gave a direction how will they ensure smooth supply of Iron ore at reasonable price.

For Gazetted Notification by the state government: Click here

 


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