By Our Correspondent
BHUBANESWAR: The steel sector, especially MSMEs, in mineral rich Odisha is struggling for survival. About 44 sponge iron making units out of 106 have been closed, and several companies are operating below their installed capacities due to the unavailability of iron ore at competitive prices.
Amid the acute shortage of iron ore and reports of closure of several MSMEs, industry experts and associations have appealed to the State Government to expeditiously provide iron ore under its pre-emption scheme for saving languishing Odisha based sponge, pellet and steel units. According to sources, about 60 per cent of iron ore produced in the State is sold outside Odisha despite huge protests from State-based plants. There has been a huge gap in demand and supply, while price of iron ore in Odisha is the highest in the country.
Recently, several industrial bodies like the Confederation of Indian Industries (CII), the Odisha Sponge Iron Manufacturers Association (OSIMA) and others have requested for intervention of the State Government to address the iron ore crisis in Odisha.More than 15 sponge iron and pellet companies are eagerly waiting to receive the allotment of iron ore from the Steel and Mines Department to supply iron ore under the State’s pre-emption policy.
Utkal Chamber of Commerce and Industry president Brahma Mishra said that the Chief Minister Naveen Patnaik had come out with a brilliant policy of pre-emption to promote value addition of the mineral resources in the State as early as 2012.The Odisha Government’s pre-emption scheme of iron ore has saved many industries, protected thousands of people’s livelihood and resulted in the industrialisation of modern-day Odisha.
“Today the situation is even worse than in 2012 as the merchant mines are diverting record volumes of iron ore outside Odisha at the cost of killing Odisha’s captive industry. Many State-based plants have already applied to the Odisha Government under its pre-emption scheme and are waiting for the allotment of iron ore.The situation is critical, and we appeal to the Chief Minister to rescue the steel sector and MSMEs from this crisis by allotting much-needed iron ore expeditiously. Thereby ensuring higher revenue for the State exchequer and employment for the people of Odisha,” said Mishra.
“The pre-emption scheme is a brilliant and progressive policy enacted by the Chief Minister that can prevent the sickness and closure of the MSMEs in the steel sector. This can be instrumental in creating more wealth and jobs in the State, reducing unemployment among the youth. This would also help to bring more big-ticket fresh investments in the State,” said Orissa Sponge Iron Manufacturers’ Association chairman Yogesh Dalmia.
