Odisha : Decision on Iron Ore supply to industries at a fair price soon

The Odisha
government will very soon take a decision on providing 50% iron ore produced in
the state at a fair price. However, the ministerial panel for raw material
supply to state based industries will again meet once or twice before
finalising its recommendations for the government, Odisha finance minister and
head of the panel Mr.Prasanna Acharya said after the meeting.

In the meeting
held Thursday evening, several stakeholder groups including the Odisha Sponge
Iron Manufacturer’s Association (OSIMA), Eastern Zone mining Association, (EZMA),the
Kalinganagarar Industries Association have submitted their demands before the panel.
However, the ministers have asked the industry associations to submit their
demands in writing before the panel.

The KalingaNagar
Industries Association and All Odisha Steel Federation (AOSF) president P.L.Kandoi
demanded the government to make suitable and long term arrangements for supply
of raw material (iron ore) to the user industries along with a fair pricing
mechanism.

Similarly, the Odisha
Sponge iron Manufacturers Association (OSIMA) has requested the government
(ministerial Panel) to take time bound decision to provide iron ore to the raw
material starved sponge iron industries at a fair price. “The state sponge iron
units are facing raw material crunch for the last several years and some have already
closed down their plants. The industry can be revived if 50% of the iron ore
produced in the state would be supplied at a fair price” said Mr.P.L.Mohanty,
chairman OSIMA.

On the other hand the Eastern Zone miner’s Association;
(EZMA) representing as many as 56 miners have also given its proposals before
the panel. The Association president Mr.R.L.Mohanty has already denied the
charge of cartelisation and said that the industries can always negotiate the
price matter with the miners.

Reported by Tapan Moharana