ROURKELA: Confronted with acute scarcity of iron ore with unprecedented value hike, the secondary iron and metal industries in Sundargarh and remainder of Odisha, principally in MSME sector, have despatched an SOS to the federal government to bail them out with corrective measures.
Affected industries have alleged synthetic scarcity with rampant diversion of iron ores to different states and value manipulation by service provider mines. The sponge iron vegetation and downstream industries – together with induction furnace models and rolling mills – underneath the banner of Odisha Sponge Iron Manufacturing Affiliation (OSIMA) wrote to the Principal Secretary of Metal and Mines Division to make sure assured availability of iron ore at affordable value.
OSIMA Chairman Yogesh Dalmia stated pressing pre-emptive measures are wanted to assist the struggling small and medium industries engaged in value-addition and generate bulk employment and income for Odisha.
State-based industries with out captive mines want 81.40 million tonne each year (MTPA) of iron ore, however with bulk iron ores reaching different states for value-addition, they’re reaping excessive revenues from completed merchandise at the price of Odisha and its industries. This leads to end-use vegetation within the State left to starve for the chief raw-material and compelled to acquire them at abnormally excessive costs.
Iron ore manufacturing in Odisha dipped by 26 per cent in 2020-21 at 107 MTPA towards 145 MTPA within the previous 12 months following everlasting closure of a number of mines in March 2020. A number of service provider mines with mixed capability of 72 MTPA have been auctioned, however solely two mines of OMC Ltd with 11.98 MTPA capability began operation.
“Regardless of every part, the entire manufacturing capability of service provider mines in Odisha is about 105 MTPA towards 81.40 MTPA demand of Odisha-based vegetation,” stated Damlia, including the State authorities has the facility to manage iron ore provide and costs in favour of end-use vegetation.