Steel plants at Odisha looks for Stability in raw materials procurement 

  • AOSF petition to ministry for policy
    requirement
    :-State of Odisha has large no. of 
    steel producing plants and these units are actual end users which generate
    revenue and growth for the state. So, there emerge a need to proper 
    supply of
    ores to these industries for their survival among domestic and international
    competitors as the current situation of all these units are are out of
    production since last two years. 
    By considering this status of steel industries, president of AOSF Mr. P.L.
    Kandoi approached the ministry to get some support from concerned Govt.
    departments for the raw material availability at affordable cost.
  •  Ministry Justification:- Since the Odisha govt. failed to its promising commitments of no control
    over natural resources distribution and inadequate  industrialization,hence
    the units started starving and become sick after the imposition of strict
    penalty rates on various fields by Shah Commission.
  • Suggestions made by Ministry to AOSF:-Ministry proposed a policy named “Formulation
    of Policy on supply of Mineral ore to Odisha based industries on Long term
    basis.”under which        
    All the closed mines should be made operative very soon by allotting mining
    rights to them and there should not be any stock accumulation kind of activity
    with them. Royalty collection % may vary by Govt. i.e 100%/150%/200%.
                                                                        Base price and Long term linkage
    system

    should be accepted by Govt. and OMC to avoid the need of any tender or
    e-auction for steel units and coal. Exports
    of Ore should be made only after meeting the state requirements and if the surplus
    amount available with the state and rates should go definitely high for it as
    compared to domestic prices.                                                                              
    No new entrants  like POSCO, Arcelor Mittal should be allowed
    unless all existing units come to operation.

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