Newly-appointed Principal Secretary of Steel & Mines Raj Kumar Sharma has sought to clear the doubts about the issue of raw material supply to industries in the State. Sharma, who took over charge on Tuesday, met representatives of some industrial houses, which have signed MoUs with the Government to set up steel complexes and want long-term linkage (lTl) of raw materials.
Only 11 out of 33 MoU-singed companies participated in the discussion in the presence of Minister of Steel & Mines Prafulla Kumar Mallick. The industry representatives raised the issues of different grades of iron ore, the increase in transportation costs and the price hike of ore despite its fall in the international market due to recession.
“However, they welcomed the decision of the Government for extending long-term linkage of raw materials to industries by the Odisha Mining Corporation and the 50-per cent supply from mines which do not have captive industries,” said Mallick to the media after the meeting.
He said the issue of supply of different grades of iron ore from Fe 63 to Fe 67 to industries needs to be sorted out as the industry officials pointed out that lower grades of ore increase input cost. Regarding pricing of iron ore, the Minister said the IBM is looking after it and the OMC is engaged in e-auction of raw materials.
Secretary Sharma, while outlining the stock position of raw materials for industries, cautioned that if allotment of raw materials is not executed by any particular industry, it would be debarred from getting further allotments. However, he assured them to meet him one-to-one to resolve the issue of raw materials. Meanwhile, the Government has intimated industries through an advertisement about their raw material requirements.
The Minister said the Government has decided to increase iron ore production to reach the target of 70 million tonnes (MT) by the end of this financial year. This would help mop up revenue to a tune of Rs 6,500 crore from the mining sector. The OMC, by March 31, 2015, plans to produce 5 MT of iron ore. Accordingly, 2.5 MT of iron ore would be available for lTl, said sources.