The Bellary kings are behind the bars. But the mining operations that they set on roll in Karnataka and Andhra Pradesh has landed the steel industry in Chhattisgarh into big trouble.
The mining of iron ore in Karnataka and Andhra Pradesh has come as a big jolt for the steel makers in Chhattisgarh. For, it resulted in setting up of many steel plants in parts of Tamil Nadu, Karnataka and Andhra Pradesh—affecting the steel supply from the state.
Chhattisgarh, endowed with rich minerals, was once the biggest steel market in the country. The southern states were the biggest market for the steel produced in the state. Over a period of time, the demand from the southern states has drastically come down.
“The demand from southern states had come down by 45 to 50 per cent that had hit the steel industry, which is already reeling under serious crises,” Chhattisgarh sponge iron manufacturers association President Anil Nachrani told Business Standard. The local industry in South is catering the demand in the area and hence the steel makers here are finding hard to get the order, he added.
The steel market of Chhattisgarh is fast sinking and has now limited only to the local demand. Nachrani said the local market was also limited and there had been restricted demand of steel in the state.
“The local demand is not enough to keep the industry survive,” he added. Following the shortfall in the demand, most of the steel units in the state had curtailed the production by nearly 50 per cent. The steel makers in Chhattisgarh have urged the state government bail them out from the crises. “The state government will give all possible assistance to the local industries as they are the backbone of state’s economy,” state’s industry minister Dayaldas Baghel said.