With Odisha emerging as a major industrial hub in the steel sector, the Ministry of Steel has urged the State Government to provide price rebate to the bulk buyers of chrome ore, which is a major raw material used in steel making, second to iron ore.
The Odisha Mining Corporation (OMC), a State-run PSU, sells chrome ore, which is abundantly available in Odisha.
Sources said Union Steel Secretary Aruna Sharma has written a letter to the State Government in this regard after visit of Union Steel Minister Chaudhary Birender Singh to the Kalinga Nagar industrial hub a month back. The Minister had reviewed the progress made by various companies, including Tata Steel, Jindal Stainless limited, Visa Steel and MESCO.
Minister had expressed happiness that Odisha had the potential to produce 100 million tonnes of steel and acknowledged Odisha’s prominent role in the steel sector.
Sharma has mentioned that the OMC, from its Daitari iron ore complex, sells 70 per cent production within the State and balance 30 outside through e-auction. Prices of ores supplied to outside shoot up many times due to limited quantity offered in e-Auction. Under this backdrop, Sharma has requested the State Government to provide some rebate keeping the interest of steel producers.
Sharma also urged the State Government to lessen power charges for steel sectors, which is very high with 55 paise being charged per unit in Odisha against five paise in Jharkhand and 40 paise in Chhattisgarh and Punjab.
Sharma urged requested the State Government to provide incentives to energy intensive ferro alloys industries in line with Andhra Pradesh.
The Union Government has identified Kalinga Nagar as National Investment Manufacturing Zone (NIZM), which is expected to attract investment of Rs 1.5 lakh crore and give employment to 4,50,000 people.
It may be noted that the NIMZ would be a combination of production units, public utilities, logistics, environmental protection mechanism, residential areas and administrative services.
Hence, Sharma has urged the State Government to finalise a comprehensive plan for Kalinga Nagar industrial hub and suggested to promote downstream and auxiliary industries for more consumption of steel and value addition within the State.