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Chhattisgarh steel makers want Odisha model in state

Source : BUSINESS_STANDARD
Last Updated: Mon, Dec 10, 2012 03:56 hrs

pReeling under serious raw material crises steel makers in Chhattisgarh want Odisha model in the state for their survivalppThe Odisha government in its recent order had directed that atleast 50 per cent of the iron ore lumps and 50 per cent of the iron ore fines won from the mines in any month and not put to captive use by the lessees should be sold to the stand alone mineral based industries located in the state The instruction shall be effective from December 2012 till further orderppThe order dated December 5 2012 had underlined the problems faced by the Odisha steel industriespp&ldquoInspite of state Odisha having adequate reserve of iron ore representations are being received from the state based iron and steel industries that they are facing acute crises of raw material&rdquo the order said adding that this had severely affected the production that would have impact in state&rsquos economyppThe Odisha government&rsquos initiative had armed Chhattisgarh&rsquo steel makers to demand similar move by the state government for the survival of the units The state has 100 sponge iron units and equal number of steel facilities But most of the units are running under production while many are on the verge of closure following shortage of raw materialppThe state&rsquos units required about 12 million tonnes MT of iron ore per annum They are getting 3 MT from state-owned National Mineral Development Corporation NMDC that has major mining operation in the state The industrialists were purchasing iron ore from Odisha to meet their demand of raw materialpp&ldquoWe demand the state government of Chhattisgarh to immediately issue similar order to ensure supply of 50 per cent iron ore to the local industries&rdquo President of Chhattisgarh Sponge Iron Manufacturer&rsquos Association Anil Nachrani told Business Standard This would bail out the local industries from the crises he addedppIf the practice is implemented in the state the NMDC alone can meet the entire raw material demand of the state&rsquos industriesp


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