Ore shortage: Steel models in Odisha need exports curbed
2 min read
By Express News Service
JAJPUR: Iron ore manufacturing in Odisha, a number one provider of ore to the nation, has considerably declined from 142 million metric tonne (MMT) in 2019-20 to 111 MMT in 2020-21, elevating considerations over the survival of home metal corporations. Further, reckless export of iron ore has created an enormous scarcity leading to unprecedented improve in costs.
Of the 111 MMT of iron ore produced in Odisha, round 65 MMT is produced from captive mines of Tata Steel, SAIL, JSW Steel and Arcelor Mittal. Most of the auctioned service provider iron ore mines corresponding to Serajuddin, Fomento, Tarana and Vishal LPG haven’t began manufacturing or achieved minimal manufacturing threshold. This resulted within the service provider provide of ore to shrink to solely 44 MMT with OMC producing round 13 MMT, Rungta Mines 10 MMT, Essel Mining 6 MMT and D R Patnaik 4 MMT.
Due to decreased service provider iron ore provide, iron and metal crops from West Bengal and Chhattisgarh actively participated on the latest OMC public sale held on June 2 whereby 6,19,000 MMT of iron ore was supplied for public sale. The common worth of iron ore was stored at Rs 11,612 per MMT, a rise of round Rs 4,000 per MMT as in comparison with the final tender.
Industry specialists mentioned the value improve was consider to reap income from their very own mines as the value decided by the public sale turns into relevant to end-user industries with out captive iron ore mines in Odisha who’re long run lease consumers of OMC. However, because of this unprecedented worth rise, many models have turn out to be unviable and shut down. Even earlier, a number of industries like NINL, MESCO, Adhunik, Concast, MSP, and so forth had closed.
Many different end-user industries have been badly hit, main to large retrenchment of manpower through the robust instances in addition to losses within the revenues of the State authorities. Industry our bodies like Orissa Sponge Iron Manufacturers’ Association (OSIMA) and Kalinganagar Industries Association (KIA) have sought the intervention of Chief Minister Naveen Patnaik, Chief Secretary and Secretary, Steel and Mines within the matter to maintain iron ore costs at an affordable degree.
“There should be a hike in production of iron ore. Secondly, captive miners should not take part in iron ore auction process and a special provision should be made to dictate fair price of iron ore for the LTL buyers so that iron and steel industries in the State can survive and make some profit,” mentioned P L Kandoi, president of KIA. Voicing comparable considerations, OSIMA president Yogesh Dalmia opposed the present public sale course of and mentioned the public sale of iron ore by OMC ought to be made on a month-to-month and never bi-monthly foundation.
“Despite the auction, 80 per cent of the iron ore should be reserved for Odisha-based industries. OMC should focus on increasing its iron ore production first and stop exporting the mineral to cater to the state-run iron and steel industries at a fair price.” added Dalmia.
