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The state government has turned down the proposal of the All Odisha Steel Federation (AOSF), an association of state based steel and sponge iron manufacturers, to forge joint ventures (JVs) with mining PSU, Odisha Mining Corporation (OMC).
“The JV deal with OMC for mining operations as suggested by AOSF is not workable. OMC's mandate is to prioritize supply ores to industries operating within the state but not to have any arrangement for carrying out mining jointly”, said state steel & mines minister Rajani Kant Singh. The AOSF had earlier suggested that as a long-term remedy, the state government should direct OMC to have JV with the local steel units.
AOSF had a meeting with the minister and steel & mines secretary, G Srinivas to reiterate its demand for overcoming raw material availability problems of local industries. “The local steel making and sponge iron units are starving of raw materials and are forced to run their plants at depleted capacities. We have urged the government to ensure ore supplies to these industries instead of giving only lip service”, said P L Kandoi, president of AOSF.
Meanwhile, AOSF has filed a writ petition in the Odisha High Court, pleading for continuing the notification of the state government that sought reservation of at least 50 per cent ore for local steel players.
The law department has objected to the resolution dated December5, 2012 holding that it is not legally tenable. Earlier in February this year, the Union mines ministry had also disapproved the resolution, stating that it did not conform to mining laws.
