Becoming a member of the Union Authorities’s mission for 300 MT metal within the nation, the Odisha Authorities has set a goal of manufacturing of 100 MT metal within the State by 2030. The Odisha Financial Survey 2021 Report says the overall put in capability of metal vegetation in Odisha is 32.82 MTPA.
Contemplating the supply of iron ore, coal and numerous different pure benefits together with the present band of enormous traders within the metal sector, this goal appears to be lifelike and really strategic in strengthening the business and financial system of the State. Nevertheless, the State Authorities must take numerous tactical initiatives to make Odisha engaging for traders, present and new. Iron ore and coking coal is the important thing uncooked materials for metal manufacturing. Odisha has 33 per cent of India’s iron ore as of 2019.
About half of India’s iron ore is produced in our State. Nevertheless, sadly, lots of the metal vegetation in Odisha are struggling to satisfy their iron ore requirement at a aggressive worth.
After the Mineral (Public sale) Guidelines, 2015, the iron ore blocks are allotted based mostly on public sale by the State Authorities. From the previous auctions, it’s discovered that there isn’t a desire for the present metal producers of the State. Large firms having metal making services outdoors the State are taking benefits of this and Odisha’s iron ore is transferring out of Odisha with none worth addition.
Although the State earns the royalty and different payables in mining, with out worth addition the state fails to maximise the incomes from its mineral reserves.
To draw extra present and new traders within the metal sector, the Odisha Authorities must make a preferential public sale for the allocation of iron ore blocks to the State-based worth addition industries.
Part of the mineral produced within the State by service provider miners, together with Odisha Mining Company, may also be reserved for the State based mostly metal industries in order that extra traders take curiosity in Odisha. In any other case, traders with out assurance for uncooked materials will lose curiosity within the State like POSCO. Reserving part of the mineral reserve may even act as an incentive for the traders to put money into the State.
Although Odisha has 24 per cent of the coal reserve within the nation, the supply of coking coal shouldn’t be satisfactory. Due to this fact, many of the metal producers within the State rely on import.
The State Authorities can cut back the dependency upon import of coking coal by selling metal making by means of coal gasification expertise. The Odisha Authorities, to make the 100 MT metal manufacturing goal extra achievable, additionally ought to encourage brownfield growth of present metal tasks and vegetation. Among the huge firms like ArcelorMittal, SAIL, Jindal Metal and Energy, Tata Metal have already introduced or began work for the growth of their present metal vegetation.
ArcelorMittal has already introduced an funding of Rs 2,000 crore for the growth of its pellet plant at Paradip. Lately, the corporate has signed an MoU with the Odisha Authorities to arrange a mega metal plant in Kendrapara district with an funding of Rs 50,000 crore.
SAIL, in its imaginative and prescient 2030 programme, plans to extend the capability of the Rourkela Metal Plant to eight.8 MTPA. Lately, the high-level clearance authority (HLCA) of the Odisha Authorities has permitted the proposal of growth of JSPL’s Angul metal plant to 18.6 MTPA.
Equally, the Authorities has permitted the growth of Yazdani Metal and Energy’s growth proposal rising the capability of its built-in metal plant at Kalinganagar from the present 0.07 MTPA to 1.19 MTPA.
Naveen Jindal, Chairperson of Jindal Metal & Energy (JSPL) which has already arrange Odisha’s largest metal plant of 6 MTPA capability at Angul has just lately introduced the Firm’s Imaginative and prescient 2030 for Odisha. As per this, the corporate plans to broaden its capability to 25.2 MTPA and arrange world’s largest metal plant. Brownfield expansions require much less land acquisition for the mission in addition to for creating related infrastructure like street, railway strains, water provide strains and so on. Current services of industries can be utilized optimally with brownfield expansions.
The Authorities ought to incentivise this by offering exemptions in taxes and numerous duties. This may even encourage present traders to speculate extra within the state in order that the aim of 100 MT metal turns into extra realisable.
Encouraging the present traders for brownfield growth would even be comparatively simpler for the State Authorities due to the familiarity with one another. Nevertheless, Odisha wants to maneuver one step forward in capitalising on the rising metal demand and its obtainable iron ore reserve.
The Authorities want to provide desire to brownfield tasks and facilitate a speedy approval course of. An assurance of safe uncooked materials provide at a aggressive worth both by means of a preferential public sale or by means of Odisha Mining Company could be a bonus. Else different States could be producing extra metal with iron ore from Odisha.
(The author is Assistant Professor, Indian Institute of Mass Communication, Dhenkanal)