The persevering with iron ore scarcity has pushed the MSME industries within the State’s metal and mines sector to the brinks of closure.
Metal, pellet and sponge iron items have been hit laborious because of the excessive value and low iron ore availability within the State. Out of 109 sponge iron crops, 44 items have already been closed. A lot of the MSME items rely on service provider mines to satisfy their iron ore necessities. However more and more, service provider mines are diverting a big share of iron ore produced in Odisha outdoors the State.
For example, within the monetary 12 months ( FY) 2019-20 and FY20-21, dispatch of iron ore outdoors the State was 58 per cent and 60 per cent, respectively. This has created a large hole in demand and provide, resulting in a steep rise in iron ore costs and fall in iron ore availability for State based mostly crops.
As per the Indian Bureau of Mines (IBM), the common gross sales value of 62-65 per cent iron ore lumps in Odisha has elevated by 176 per cent from Could 2020 to Could 2021, and that of fines have elevated by 352 per cent.
The value rise is the best in India. “Odisha has witnessed the best ever surge in iron ore costs than any State in final 12 months, and iron ore in Odisha is costlier than that in another Indian States. The affect of the iron ore disaster is already seen in MSME iron and metal industries,” mentioned Utkal Chamber of Commerce and Business (UCCI) president Brahma Mishra.
Not too long ago, greater than 15 sponge iron and pellet making corporations have utilized to the Metal and Mines Division to offer the iron ore beneath the pre-emption coverage of the State Authorities.
The MSME sector in Odisha, wherein pellet and sponge iron industries share a large half, makes a major contribution to the Odisha financial system when it comes to employment technology and income. Closure of those items will go away hundreds of individuals unemployed, which is able to add to the burdens of the State, particularly within the Covid-19 hit financial system.
Business specialists and quite a few associations have referred to as for proactive motion by the State Authorities to handle the difficulty and guarantee iron ore provide to those metal sector and MSMEs.