Faced with acute scarcity and sharp price hike of iron ore, steel industry bodies have urged the Odisha Government to restore the right of preemption under the Minerals (Other than Atomic and Hydrocarbons Energy Minerals) Concession Rules 2016 to save the steel sector in the State.
The Orissa Sponge Iron Manufacturers Association (OSIMA) in a letter to the Government has highlighted the iron ore shortage and unprecedented rise of iron ore, which have severely affected the State-based steel units. “This has become impossible to source because of huge-scale inter-State export of iron ore outside the State, making it very challenging for Odisha-based end-use plants to secure ore availability at reasonable prices,” OSIMA chairman Yogesh Dalmia has written in the letter.
The association has appealed to the State Government for immediate intervention by exercising the right of preemption under the Minerals (Other than Atomic and Hydrocarbons Energy Minerals) Concession Rules 2016 to make iron ore available for the State-based steel units and save thousands of jobs.
“There is an urgent need to reinstate preemption rights of iron ore for State-based end-use plants and curtail the rampant diversion and export of precious iron ore outside Odisha, ensuring sustainable supply of usable ore for end use plants based in the State safeguarding livelihood of lakhs of Odia people,” the letter has argued.
Restoration of preemption rights can not only save operating steel industries but also can help in improving the revenue for the State Government and employment opportunities for people of Odisha. This would also help in increasing investors’ confidence in State, the letter has stated. The Confederation of Indian Industry (CII) in a separate letter to State Government has also sought its intervention in ending the iron ore crisis for State-based steel units, which include steel, pellet and sponge iron manufacturers. “Majority of mines produces only 60-70% of their EC limit and balance capacity is lost every year.
This implies artificial scarcity in market leading to high prices and also revenue loss to State Government in terms of premium (where applicable), royalty, DMF and NMET,” the CII has said, requesting the Government to take necessary steps in ensuring full production by the operating mines to boost supply of iron ore and also revenue of Government.
Besides, the Pellet Manufacturers’ Association of India (PMAI) has also written to the State Government about iron ore shortage faced by Odisha-based units and requested it to take measures for protecting them.
