By Our Correspondent
BARBIL/KOIRA/BHUBANESWAR: While questioning the move of the both Union Steel-Mines Ministries and State Steel-Mines Department allowing Mining Operations and Mineral transportation during COVID-19 lockdown in Odisha, the Oppositions BJP and Congress have alleged that the move was intend to help Mines owners and a ‘Under Ground Scam’ is in offing.
“It was very unfortunate an uncalled for as both Union Steel-Mines Ministries and State Steel-Mines Department allowing Mining Operations and Mineral transportation during COVID-19 lockdown in Odisha,” Congress MLA Tara Bahinipati said. BJP’s former MLA Pradeep Purohit however alleged that some selected mines owners getting benefit out of it and demanded a probe into it.
Keonjhar Truck Owners’ Association President Debu Patnaik alleged that District administration showing favour to outside Truck and Lorries while State’s people are suffering State Steel and Mines Minister Prafulla Mallick however refuted the allegations and said, whatever decisions were taken, and it was aimed to enhance growth.
In March this year after lockdown was imposed, Union Steel Secretary had written a letter to States including Odisha to ensure smooth transportation of Minerals and Raw materials, functioning of Steel Plants and transportation of finished Steel.
Union Steel Secretary, citing production, supply and distribution of Steel and its inputs materials under section 2(1)(a)(xii) of Essential Services Maintenance Act of 1981, in his letter said that in view of the restriction imposed on operation of non-essential commercial establishments and movement of people in order to prevent the spread of COVID-19, in this regard, it has came to the notice of the Steel Ministry that the several Steel Plants across the Country are facing problem.
“Entry of workers, supply of raw materials and despatched of finished Steel, this is likely to adversely affect not only the operations of these Steel Plants but also has the potential to damage their Plant and Machineries,”
“In view of the fact that section 2(1)(a)(xii) of Essential Services Maintenance Act of 1981 clearly lists “any service in any establishment or undertaking dealing with production, supply, or distribution of Coal, Power, Steel or Fertilisers” as an “Essential Service”, it is requested that no restriction shall be imposed on the operation of Steel Plants, both Integrated, as well as Induction Furnace or Electric Arc Furnace based Steel units, entry of workers in these engaged in these Plants, movement of raw materials including Iron, Ore,CoalLimestone, Dolomite,Ferro-alloys, Scrap, Sponge Iron and intermediate or finished products to and from such Plants through road, rail, water and sea,” Union Steel Ministry’s Letter dated on March 24, 2020 said.
Citing the problem faced by Mining sector, it wrote, considering the fact that mining activities are integral to the operations of Plants, it had also requested that no restriction should be placed on the operations of Mines of Coking Coal, Iron, Ore,Coal, Limestone, Dolomite, Ferro-alloys, Scrap, Sponge Iron and as well as operation of Sponge Iron Plants, Ferroalloys, Iron Ore Pellet Plant which supply critical raw materials for Steel making, the letter added.
It had said that suitable instructions may also be issued for allowing un-restricted Inter-State movements of Trucks carrying the above mentioned raw materials and finished Steel in order to maintain an efficient supply chain.
Compared to last year (CY18), this year, Odisha’s contribution to India’s total iron ore production has increased significantly. Paradip remained the largest iron ore exporting port in CY19. This year, Paradip Port’s iron ore exports increased 110% to around 13.28 MnT against CY18’s 6.32 MnT. Dhamra Port is in second spot at 4.16 MnT and Vishakhapatnam is third, reporting exports of around 3.77 MnT.
In CY19, average annual prices of Odisha’s iron ore lumps of Fe 63% (5-18mm) were reported at INR 3,971/MT. The highest price was recorded in the second half of February at INR 4,600/MT, while the lowest price was observed in the first half of October at INR 3,500/MT.
The average annual price of Odisha’s iron ore fines of Fe 63% were reported at INR 1,947/MT. Prices peaked at INR 2,300/MT for one week during mid-February, while the lowest price was observed during the whole of October and the first half of November at INR 1,750/MT.The average annual price of Karnataka’s iron ore fines of Fe 60% were reported at INR 2,045/MT while Fe 63% lumps were reported at INR 2,934/MT.
With Mines owners and mineral exporters claiming huge lose due to COVID-19 Lockdown, but a report released by the Union Ministry said Mineral Production reported 10.0% high in February 2020 against February-April in 2019.
The Mines Ministry report said, the index of mineral production of mining and quarrying sector for the month of February, 2020 (Base: 2011-12=100) at 123.7, was 10.0% higher as compared to the level in the month of February, 2019. The cumulative growth for the period April- February, 2019-20 over the corresponding period of previous year has been (+) 1.9 percent. Mining & Mineral Statistics Division of Indian Bureau of Mines functions as the nodal agency for statistics on mineral sector and releases this information.
Production level of important minerals in February, 2020 were: Coal 780 lakh tonnes, Lignite 47 lakh tonnes, Natural gas (utilized) 2257 million cu. m., Petroleum (crude) 24 lakh tonnes, Bauxite 2190 thousand tonnes, Chromite 395 thousand tonnes, Copper conc. 5 thousand tonnes, Gold 162 kg, Iron ore 239 lakh tonnes, Lead conc. 32 thousand tonnes, Manganese ore 276 thousand tonnes, Zinc conc. 142 thousand tonnes, Apatite & Phosphorite 136 thousand tonnes, Limestone 327 lakh tonnes, Magnesite 11 thousand tonnes and Diamond 2720 carat. The production of important minerals showing positive growth during February, 2020 over February, 2019 include: ‘Zinc conc.’ (33.2%), ‘Iron ore’ (31.3%), ‘Chromite’ (18.2%), ‘Lead conc.’ (14.2%), ‘Coal’ (11.7%), ‘Limestone’ (4.5%), ‘Manganese ore’ (3.3%), ‘Lignite’ (2.6%) and ‘Bauxite’ (1.3%). The production of other important minerals showing negative growth is: ‘Copper conc.’ [(-) 60.7%], ‘Gold’ [(-) 29.6%], ‘Natural gas (utilized)’ [(-) 9.6%], ‘Petroleum (crude)’ [(-) 6.4%] and ‘Phosphorite’ [(-) 1.8%].
