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The inter-ministerial group (IMG) of Odisha government, which was formed in November last year to give its view regarding long-term supply of raw materials to local metal industries, submitted its report today to the chief minister for further discussion in the state cabinet.
"We have formed a detailed report regarding long-term raw material supply to metal companies who do not have any captive mines. The report has been submitted to the Chief Minister and will be discussed in the state cabinet further to arrive at a definite decision," said Prasanna Kumar Acharya, state finance minister and head of the IMG.
The committee was supposed to submit its report by January 31, but took extra time to study the Supreme Court decision regarding Karnataka mining. After 11 sittings and discussions with steel makers' bodies and individual companies, the committee submitted its report today.
Though the content of the report is yet to be known, sources said that the government might come up with plans for long term linkage policy for steel plants with large capacities while for small plants, e-auction of minerals would be permitted.
The committee was formed last year to solve the raw material supply problems of a number of sponge iron plants and other metal companies situated in the state. The government was forced to form such panel after Vedanta informed the government to shut down its Lanjigarh alumina refinery plant for non-fulfillment of raw material supply commitment.
The alumina refinery of Vedanta Alumina Ltd (VAL), after remaining shut for over six months, opened recently with some bauxite stock arranged from outside the state. The fate of the company's ambitious project is being decided by the tribal villagers near its proposed mining site.
While more than half of the 104 sponge iron plants of the state have closed down in last couple of years for want of iron ore, world's top steel maker ArcelorMittal Wednesday decided to drop its Odisha plan accusing the government for sitting over its iron ore lease grant proposal.
