Uncertainty looms over the revival of Odisha government owned two loss making industrial units namely IDCOL Kalinga Iron Works (IKIWL) and IDCOL Ferro Chrome Alloys (IFCAL). The uncertainty has occurred because several rounds of talks between Odisha government and SAIL have remain inconclusive over the hefty conditions imposed by SAIL. Now, all eyes on the crucial meeting scheduled to be held on 20 May’15 in Bhubaneswar.
Last year, SAIL had signed an MoU with IDCOL and had taken an initiative to evaluate the assets of the plant and subsequently prepared an investment plan aimed at better utilization of land and resources of both the subsidiaries – IDCOL Ferro Chrome Alloys (IFCAL) and IDCOL Kalinga Iron Works (IKIWL). It was decided that SAIL to aquire 100% stake of IKIWL and 51% stake of IFCAL. However, even after one year of the MoU, no significant progress has been seen in the plan owing to the conditions imposed by SAIL.
The public sector steel major has demanded that Odisha government should bear the salary expenses of all the employees of the two units for the next 3 years and transfer of the land free of cost. SAIL also wants chrome ore from the Odisha government at INR 2,000/MT. Whereas, the current market price of high grade +54 friable chrome ore is around INR 12,000-13,000/MT.
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