Faced with raw material scarcity, steel producers in Odisha
have urged the state government to increase the availability of iron ore and
chrome ore by opening all closed mines.
Members of All Odisha Steel Federation (AOSF) said most of the steel
manufacturing companies were facing closure due to non-availability of adequate
raw materials at an “affordable price”.
We are not asking for captive mines. We want the state-owned Odisha Mining
Corporation to supply us raw materials at affordable prices so that we can
compete with other national and global players. If the state government does
not pay heed to our appeal, all steel industries will be forced to shut down in
the next three to six months,” AOSF president PL Kandoi said on Tuesday.
Steel sector in Odisha is going through tough times after some mining scams
were exposed, and subsequent investigation by Justice MB Shah Commission. Most
of the iron ore mines have shut operations, while the ones that are
functioning are charging “exorbitant” rates.
The federation urged the government to fix a price cap on
raw materials, enlist all existing manufacturing units for their requirement of
iron ore, chrome ore on long-term basis, and rationalise freight rates and
water cess.
Leave a Reply