The iron ore transporters in the Maoist heartland Bastar are threatening to block all shipment of the mineral from the fields of public sector mining major National Mineral Development Corporation (NMDC) to other States while alleging ‘exorbitant’ price of iron ore per tonne for the Chhattisgarh’s sponge iron units severely affecting their business.
“The sponge iron units across Chhattisgarh have drastically reduced their offtake of iron ore from NMDC due to a steep price of `5,000 per tonne for the local industry while the same is exported to Japan at a price of `609 per tonne,” president of Bastar Parivahan Sangh Malkeet Singh Gaidu alleged while addressing a Press conference here on Monday. “If the NMDC sticks to its current level of iron ore prices, the transporters in Bastar plan to take to streets while blocking all iron ore shipments from the company’s mines in Chhattisgarh to other States,” he said. Gaidu said that about 3,000 transport vehicles across Bastar are already off the road with 6,000 drivers currently without work as the sponge iron units in the State are being forced to buy iron ore from mines in neighbouring Odisha at
cheaper rates. Since the sponge iron units are refusing to buy NMDC’s iron ore, about 15 out of 20 crushers in the Bastar region have shut their units which had rendered about 100 persons each employed with the units jobless, he said. “The scenario is frightening in Bastar as the unemployment of about 100 persons each employed with the crushers have impacted their families,” Gaidu said.
He further remarked: “Overall, taking into account transporters, people employed with crushers and sponge iron industry in Chhattisgarh, about 15,000 persons have currently been rendered jobless due to the NMDC’s iron ore pricing policy for Chhattisgarh.”
Rajeev Kapoor, president of Chhattisgarh Sponge Iron Manufacturers Association stated, “There are private miners in Odisha who exert influence on the Joint Planning Committee (JPC) in Kolkata to make the iron ore prices from their State cheaper than other States.”
He said that almost the entire iron ore fields in Chhattisgarh are currently with NMDC. About 90 per cent of the iron ore produced by NMDC in Chhattisgarh goes to industrial units in other States such as the Vishakhapattanam Steel Plant, Essar Steel in Hazira and Ispat Industries. The sponge iron units in Chhattisgarh are not receiving adequate supply of iron ore, Kapoor said. It is demanded that the NMDC cut its iron ore prices by 20 per cent for the local sponge iron and steel units. The other key demand is that there should be a Secretary level representation of the Chhattisgarh Government besides two of its additional officers in the ‘Price Determination Committee’ of the NMDC Board of Directors, he demanded.
“We also demand that the NMDC first fulfil the iron ore supply requirement of the local industry in Chhattisgarh before exporting them to other States,” he said. When contacted NMDC’s Director (Commercial) SK Das over telephone said that he was busy in a meeting and would not be able to comment on anything immediately while asking to call again on Tuesday.