 "Truckers strike in Keonjhar-Sundargarh belt paralyses mineral transport")
The ongoing truckers' strike in the mineral rich Keonjhar-Sundargarh belt has left the steel companies and other end use industries of iron ore in tenterhooks as iron ore transport has come to a halt.
The strike that entered the second day today, has hit iron ore despatches by about 200,000 tonne per day besides causing revenue loss of Rs 12 crore every day to the state exchequer by way of royalty. About 30,000 truckers are agitating in Keonjhar and Sundargarh districts protesting the state government's proposed move to fix a ceiling on transport cost and award of transportation contracts through the e-tendering mode. "Though the state government had assured to bring down artificially high transport costs by fixing a ceiling, there is no movement at the ground level. The transporters have formed a cartel and gone on an agitation as a result of which the end use industries are suffering. The government needs to wake up to this crisis and take swift steps in the interest of the steel industries which are passing through a rough patch", said a senior official at a steel company.
Last month, the Indian Steel Association (ISA) with representative firms like Tata Steel, Jindal Steel & Power Ltd (JSPL), Visa Steel, Bhushan Steel and Mesco Steel had talks with the state government on the need to slash exorbitant mineral transport costs. At the meeting, it was decided that Odisha Mining Corporation (OMC) and the directorate of mines would prepare the e-tendering platform for transportation contracts. The department of commerce & transport was asked to fix a ceiling on mineral transport cost in consultation with the district collectors. "The government is yet to fix a ceiling on mineral transport cost. The collectors have sent their inputs and it is under scrutiny. We hope to come out with a ceiling on transportation cost by end of this month or the first week of August", said Deepak Mohanty, director (mines).
Said an industry source, "The government cannot remain a mute spectator to the ongoing strike. The strike needs to be declared illegal and mineral transportation operation should be brought under Essential Services Maintenance Act (ESMA)." The strike has affected livelihoods of 150,000 transport workers and jeopardised livelihoods of 150,000 workers engaged in mining and associated industries. Steep transport costs of minerals has hurt operations of steel makers. The cost of finished steel products of domestic steel makers stands at Rs 28000 per tonne compared to a cost of Rs 22,000 imported from China.
The strike that entered the second day today, has hit iron ore despatches by about 200,000 tonne per day besides causing revenue loss of Rs 12 crore every day to the state exchequer by way of royalty. About 30,000 truckers are agitating in Keonjhar and Sundargarh districts protesting the state government's proposed move to fix a ceiling on transport cost and award of transportation contracts through the e-tendering mode. "Though the state government had assured to bring down artificially high transport costs by fixing a ceiling, there is no movement at the ground level. The transporters have formed a cartel and gone on an agitation as a result of which the end use industries are suffering. The government needs to wake up to this crisis and take swift steps in the interest of the steel industries which are passing through a rough patch", said a senior official at a steel company.
Last month, the Indian Steel Association (ISA) with representative firms like Tata Steel, Jindal Steel & Power Ltd (JSPL), Visa Steel, Bhushan Steel and Mesco Steel had talks with the state government on the need to slash exorbitant mineral transport costs. At the meeting, it was decided that Odisha Mining Corporation (OMC) and the directorate of mines would prepare the e-tendering platform for transportation contracts. The department of commerce & transport was asked to fix a ceiling on mineral transport cost in consultation with the district collectors. "The government is yet to fix a ceiling on mineral transport cost. The collectors have sent their inputs and it is under scrutiny. We hope to come out with a ceiling on transportation cost by end of this month or the first week of August", said Deepak Mohanty, director (mines).
Said an industry source, "The government cannot remain a mute spectator to the ongoing strike. The strike needs to be declared illegal and mineral transportation operation should be brought under Essential Services Maintenance Act (ESMA)." The strike has affected livelihoods of 150,000 transport workers and jeopardised livelihoods of 150,000 workers engaged in mining and associated industries. Steep transport costs of minerals has hurt operations of steel makers. The cost of finished steel products of domestic steel makers stands at Rs 28000 per tonne compared to a cost of Rs 22,000 imported from China.