By Our Correspondent
NEW DELHI/BHUBANESWAR: With COVID-19 Positive cases reaching at 79 and lockdown put in place with some relaxation to Steel and Mines Sectors , the Odisha Sponge Iron Manufactures’’ Association, an apex body of Sponge Iron Industries in the State, was on Tuesday got a morale boost after the Union Steel-PNG Minister Dharmendra Pradhan talked to them over video conference and assured all possible help from Union Government as well as from his Steel Ministry. “Held a meeting with representatives of Odisha Sponge Iron Association. Discussed several aspects related to the industry, including raw material security, liquidity, operating with social distancing post lockdown” Union Minister Pradhan twitted.
“Sponge iron units across the country including several in Odisha remained affected amid weak demand and shortage of manpower. There is also fear among players over government guidelines putting onus on the entrepreneur if a COVID-19 case is found at their units. The government last week announced fresh guidelines for enforcing the second phase of lockdown till May 3, 2020. According to the guidelines, industrial units located in rural areas were allowed to function from April 20. The units in rural areas will be able to operate only if they follow social distancing norms. Our members see no demand for their produce,” said a CMD of a Barbil, Keonjhar based Plant.
The players have shortage of money also. They are also not opening due to their apprehension over guidelines issued by the Centre and states regarding the onus on entrepreneur if a case is found in their factory, sources said. SIMA and OSIMA had inform about the situation to the Steel Ministry. Sources said the players do not want to take risk by restarting operations as markets are closed, the movement of goods remains affected and buyers are hesitant of placing orders.
Sources said there are about 306 sponge iron players which are part of SIMA and their units are spread across the states of Gujarat, Jharkhand, Chhattisgarh and Odisha. Sponge iron or direct reduced iron (DRI) is used in producing semi-finished steel items, ingots and billets, which are further used to make various finished steel items. Iron ore and non-coking coal are main raw materials used to produce sponge iron.
