Odisha panel meeting on 25th Oct to decide the amount of raw material to be supplied to industries on long term basis
Bhubaneswar: An Odisha government panel is scheduled to meet on 25th of this month to decide the amount of raw material to be supplied by Odisha Mining Corporation (OMC) to an industry on long term basis.
Last month while clearing the proposal to supply raw material to industries on long term basis, the state government has constituted the ore linkage committee headed by Industry secretary Vishal Dev with OMC Managing Director, Director of Mines and CMD of Industrial promotion and Investment Corporation (IPICOL) as members.
The State Government has signed MoUs with 49 companies for setting up steel plants in Odisha of which 31 projects have already started production, fully or partially. However, they are facing acute scarcity of raw material. In view of this problem the government has decided to sign long term pacts with the industries to supply raw material (iron ore and Chrome) from OMC on long term basis.
As per the mechanism 50% of the Iron ore production in Odisha is to be earmarked for long term linkage with MoU signed industries which have already been established and started full or partial production.
“The quantity of ore to be assured to an industry under linkage Policy will be determined by the committee comprising of officials of Industries department, director of mines, OMC and IPICOL (Industrial Promotion Infrastructure Corporation of Odisha limited)” Odisha chief secretary had said while informing the policy last month.
“Price of such long term linkage will be fair market price as discovered through National E-Auction conducted by OMC for the remaining 50 per cent quantity,” Mr.Pati said.
In order to achieve the objective of supplying raw material to industries, a detailed ramp up plan for major mines of OMC for enhancement of production of iron ore has been approved by the State Government.
During 2014-15 iron ore production will be 5.5 Million Ton, which will be scaled up to 7.9 MT in 2015-16. OMC will produce 9.5 MT iron ore and in 2017-18 it will produce 15 MT and by 2018-19 it will be scaled up to 21 MT.
Leave a Reply