The Orissa Mining Corporation (OMC) is exploring the possibility of entering into a long-term raw material supply agreement with the steel players who have signed MoUs (memorandum of understanding) with the Orissa government.
OMC move is aimed at securing supplies of raw material like iron ore and chrome for these companies.
“We are looking at the possibility of having a long-term raw material supply pact with the steel companies which have signed MoUs with the state government. The details of this proposed agreement are yet to be finalised”, said Ashok Dalwai, secretary, steel and mines department of the Orissa government.
On allegations of the Kalinganagar steel units that OMC is selling raw materials at exorbitant prices, he said “These allegations are baseless as OMC has a tendering system and the raw material prices are fixed based on the open tender prices. In the sale of raw materials, OMC gives a preference of up to 70 per cent to the MoU signed companies”.
He admitted that the steel projects in the state are facing problems in getting raw material like iron ore even though 28 out of the 49 steel players which had entered into MOUs with the state government have resumed partial production.
Dalwai was talking to media persons at the curtain raiser of the 13th International Convention on Clean, Green and Sustainable Technologies in Iron and Steel Making to be held in the city on July 15-17 this year.
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Earlier addressing the delegates, Dalwai said, “India has posted a growth of 8 per cent in its steel output in 2008-09 compared to 2007-08 even though the global steel output witnessed a slump of 29.8 per cent in the same period. The global steel production fell from 1197 million tonnes (mt) in 2007-08 to 840 mt in 2008-09.”
He pointed out that India’s current steel production stood at 65 mt out of which 10 mt was contributed by Orissa.
“The country’s per capita steel consumption was only 37 kg as against the global average of 160 kg. There is strong correlation between the GDP growth of a country and its steel consumption”, he added.
The country’s steel output was projected at 250 mt by 2020 and Orissa is poised to be the major contributor to the nation’s steel output by then.
Considering the growing steel output and the impact of the steel industry on the environment, the emphasis needs to be on energy efficient and environmentally sustainable technologies in iron and steel making, said Dalwai.
The steel industry has been one of the major guzzlers of natural resources as the industry uses raw materials which are carbon intensive and makes use of processes which are energy intensive, he informed.
Speaking on the occasion, Ajit Tripathy, Chief Secretary of the Orissa government said, “The focus of the international steel convention would be on the use of environmentally sustainable technologies in steel manufacturing.
The convention would witness the participation of 23 international delegates from countries like USA, Germany and South Africa.”
The domestic steel makers which would participate in the convention include Tata Steel, Steel Authority of India Limited (SAIL), Jindal Steel & Power Limited (JSPL), JSL, Rashtriya Ispat Nigam Limited (RINL) and Neelachal Ispat Nigam Limited (NINL) to name a few.