In a big respite
to the existing steel industries in the state, the Odisha government has directed
the miners to sale 50% of iron ore produced by them in every month to the state
based stand alone steel units at the prevailing market price. This new order
will be effective from this month till further orders. However, while the state
is preparing to e-auction minerals from April onwards, it is still unclear to
what extent the order would be applicable.
In a letter to
the Director of Mines the Steel & Mines Secretary Rajesh Verma has directed
to channelize sale of iron ore to the stand alone mineral based industries in
the state. “Within the ambit of the powers conferred by the provisions in the
Mineral Concession Rules, 1960,the state hereby directs that atleast 50% of the iron ore lumps and 50% of the
fines won from the mines in any month, but no put captive use by the lessees,
will be sold to the stand alone mineral based industries in the stat, limited
to the requirement of such other
industries in an equitable manner, on payment of the prevailing fair market
price by the user industries â€Âthe order says.
The state based
stand alone steel units under the banner of All Odisha Steel federation (AOSF)
have been demanding for long term iron ore linkage. Last month the
representatives from AOSF meet the Shah Commission and steel and Mines
Secretary Rajesh Verma on the issue to take immediate steps for supply of raw
material to the state based industries.
In its
representation before the state government the Federation has requested the
government to instruct all working mines o produce on priority, permitted
quantities of ore to feed the state based steel units. These quantities should be
pre-empted by the Govt (OMC) and then put through e-auction or be allotted to
the state based industries on a cost+basis.
This government
order is expected to solve the raw material crisis of the steel units, at the
same time it has also raised a basic question mark on the feasibility of the
units, since it will be impossible for them to compete with the Steel plants
with captive mines by procuring raw material at market price.
Leave a Reply