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Lack of mineral policy fuelling raw material crisis: Opposition

State has adequate mineral resource to feed inustries, says govt

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BS Reporter Bhubaneswar
Last Updated : Jun 20 2014 | 10:25 PM IST
The Opposition today upped the ante on the state government over the raw material crunch faced by industries, alleging that lack of mineral policy and effective mechanism to supply raw material to end use industries had led to the crisis.

Initiating an adjournment motion on the issue, Opposition chief whip Naba Kishore Das said, “There is no mineral policy of the state government. This government claims an inter-ministerial committee was formed to overcome the raw material crisis. But the committee’s recommendations are yet to be implemented nor have they been made public. One wonders if the report submitted by the committee has been thrown to the dustbin.”

Senior BJP leader K V Singhdeo blamed the government of committing breach of trust by denying raw material security to industries which had already grounded significant investments in the state. Instead, the government has recommended mining leases for big investors like Posco India and ArcelorMittal, which are yet to implement their projects in the state.

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“There is no provision to supply ore to the industries that have set up their units in the state. Just by declaring policies and not keeping a check and balance on those policies, you cannot ensure that the industries will survive. The issues of the steel units operating at Kalinganagar are not being looked into. They are on the verge of closure and not able to service their loans,” Singhdeo said.

“The government needs to come out with a clear cut policy to ensure that whatever ore is raised in the state is supplied on a priority basis to industries that have set up their units in Odisha,” he added.

Congress MLA Devendra Sharma said, “There is no mineral policy in the state. Nor does the state have any action plan to meet the raw material requirement of industries. The government has signed MoUs (memorandum of understanding) with 93 industries. But the progress on mineral-based industries has been stuck due to lack of a policy.”

In reply to the motion, steel & mines minister Prafulla Mallick said, “The state has adequate reserve of raw material to feed the proposed mineral based industries in the state. In order to ensure long-term and equitable supply of raw materials to these industries, the state government has been preparing an action plan through Odisha Mining Corporation (OMC).”

“The state government had formed an inter-ministerial committee under the chairmanship of former finance minister Prasanna Acharya to recommend measures for fair and equitable supply of raw materials to various industries. The committee has submitted its report last year and it is under the consideration of the State Cabinet,” the minister said.

“There are certain cases pending in the various courts. Once these cases are finalised, the state would come up with its own mineral policy,” Mallick added.

Mallick said, through a resolution, the state government has made it mandatory for mining lessees not having any value addition facility in the state to sell at least 50 per cent of their iron ore production to local industries.

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First Published: Jun 20 2014 | 8:20 PM IST

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