Sundargarh district, once known as industrial hub, now has lost its significance as a large number of industries have closed down while due to a slump in market and high power cost, some of the industrialists are contemplating to shift their unit to Chhattisgarh.
Odisha had become largest sponge iron producer of country since 2000 with total 104 sponge iron plants out of which 45 are from Sundargarh district situated at Kalunga Industrial Estate, Rajgangpur, Kuanrmunda, Bonei and at other places of district. The owners of the units were going through good times due to hefty profit. Thousands of persons had been directly and indirectly employed in these industries. But suddenly due to high cost of iron ore, the sponge iron plants incurred huge loss.
Thereafter, the running of sponge iron plants in district has been very difficult due to which lakhs of persons who were working in these units became unemployed. While these units were severely affected, thousands of heavy vehicles engaged in transporting the materials also were severely hit and several owners of heavy vehicles sold their vehicles looking into the pathetic condition of the sponge iron units. Meanwhile, a large number of persons who were working in these units became unemployed.
According to sources, out of 45 sponge iron units in Sundargarh district, ,fifteen sponge iron units have been completely closed down and other 30 units are struggling for survival as they are running with 30 to 40 per cent production. According to sources, some industrialists engaged in producing sponge iron in Sundargarh district, had met Steel and Mines Minister Prafulla Mallick about a year back and had apprised him about the scenario and their difficulties in running the units, but in vain.
There were 18 induction furnace units in Sundargarh district, but due to high power cost, owners of induction furnace units in district struggled to survive. Consequently, six units have already closed and rest 12 units are struggling to survive as the power cost is very high. It is Rs 5.80 per unit in Odisha in comparison to Rs 4.40 per unit in Chatsigarh. Owners of about seven induction furnace units have already located plots at Punjipathra, Raigarh, in Chhatisgarh to shift their induction furnace units there.
Similarly, out of 12 rolling mill units in Sundargarh dist, six are already closed and rest six units are now running with great difficulty.
A well known industry at Rajgangpur in Sundargarh district Hari Machines limited was closed about a year ago. Another well-known industry Adhunik Metaliks limited in the district is not running in good condition since long. Thousands of employees of these two industries lost their job and now struggling to survive. Another well-known industry in Sundargarh district, ORIND, a refractory unit, was closed long ago with hundreds of its employees laid off. Those who had lost their jobs after closure of this unit are yet to get their outstanding dues from ORIND.
The industrialists in the district feel that the Odisha Government policies are not conducive for the sustainable growth of industries. An industrialist not willing to be named blamed that corruption in the Government departments has always been a bottleneck in the progress of industries. In the month of October last, some industrialists under the banner of RCCI had gone to meet the Energy Secretary and the Industry Secretary at Bhubaneswar and had requested for necessary steps to be taken for the revival of industries in Sundargarh district. According to sources, recently a team led by Advisor ( Steel) from Directorate of Steel and Mines, Bhubaneswar , had visited Rourkela and had called some industrialists of Sundargarh district to know their difficulties.