Starved of iron ore, 20 companies have urged the Odisha government to involve the pre-emption scheme and ensure the supply of ore.
The acute shortage of ore and increasing prices have led to a crisis calling for the government to allot iron ore under the pre-emption scheme, noted the industrial circles here.
They pointed out that in September 2014, on the long-term lineage of iron ore, chrome ore and other minerals to the MoU signed steel companies, the government had taken several measures for supply of raw material to those who set up industries in Odisha.
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The government has also ordered the mining leases in Odisha to earmark and dispose of half of the raised iron, not in captive use, for use by the state-based industries.
The government also has a pre-emption scheme as per notification on June 26, 2014, under which 50 percent of non-captive iron ore produced in Odisha should be sold to the state-based industries, informed the affected industries.
Some of the companies which have requested the state government for iron ore allotment under pre-emption scheme are Arya Iron and Steel Company, SMC Power Generation, Shri Jagannath Steel & Power, Powanjay Sponge Iron, Ganesh Sponge, and Maa Shakumbari Sponge. Earlier Jindal Steel & Power has also requested iron ore under the scheme.
Recently various industry bodies, including the Confederation of Indian Industries (CII), Federation of Indian Mineral Industries, Sponge Iron Manufacturers Association, and others have highlighted the acute shortage and the soaring price of iron ore in Odisha.
They have sought the state government’s intervention to safeguard Odisha-based industries.
Incidentally, the problems have arisen ever since the auction of iron ore mines took place in the state, and one particular company has successfully bid and secured a majority of the mines.
People in the iron ore transport sector and Keonjhar district suspect the formation of a cartel that governs and controls the entire iron ore business in Odisha.
A powerful mining contractor, a steel company and ruling party bigwigs are calling the shots.
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