The Orissa Sponge Iron Manufacturers’Association (OSIMA) has sought the intervention of the state government to remove the shortage of iron ore and coal.
More than 100 sponge iron plants operating in Orissa are struggling because of shortage of raw materials like iron ore and coal caused by poor rail and road infrastructure.
Though the industry was able to sustain the pressures during the period when demand for iron and steel was high, it is now facing the heat of global slowdown. As the demand and prices have gone down drastically, the sponge iron units are facing the threat to their survival.
In this context, the association demanded that Orissa Mining Corporation (OMC) may be advised by the state government to enter into a long term agreement with local industries for sale of iron ore.
OMC may also be persuaded to enter into joint venture for iron ore mines to raise and use iron ore for captive consumption. Till this arrangement is finalised, OMC needs to sell the entire iron ore through e-auction.
The sponge iron makers also urged the government to ask Mahanadi Coal Fields (MCL) to release the entire quantity of coal for which coal linkages have been granted by the Union coal ministry.