At a time when the non-availability of enough water is causing delay in the approval of some greenfield projects in the state, the Orissa government has decided to rationalise the water linkage to various projects from Baitarani basin.
A committee under the chairmanship of the secretary, steel and mines department would be formed shortly for this purpose.
The committee would have members from the water resources department and the state owned Industrial Promotion and Investment Corporation of Orissa Ltd (Ipicol).The decision to constitute this panel was taken in the meeting of the task force on steel recently.
Sources said, the task force deliberated at length on the availability of water in river Baitarani. Since conservation of iron ore is considered crucial for sustainable development, the task force felt the need to promote mineral beneficiation projects in that area.
The mineral beneficiation projects are expected to enrich low grade iron ore with 57 fe content to higher grade ore. It would increase the availability of iron ore in the state.
“If mineral beneficiation projects are allowed, this could increase the availability of iron ore in the state by about 1000 million tonne”, an expert opined.
Along with rationalisation of water linkage from river Baitarani, the committee would also come out with its suggestions on construction of barrages as directed by the High Level Clearance Authority (HLCA).
Latest decision of the Orissa government assumes importance as 46 projects either have water linkage or have applied to the government for water linkage from river Baitarani.
It may be noted, two iron ore pelletisation projects with a combined investment of Rs 315 crore have been pushed into uncertainty as the water clearance for these projects is yet to come.
The proposal of Ardent Steels Ltd (ASL) to expand its present capacity of iron ore pelletisation from 0.6 million tonne per annum (mtpa) to 1.2 mtpa along with setting up of a 1mtpa iron ore beneficiation plant at Phuljhar in Keonjhar district hinges on the rationalisation of water linkage from Baitarani river.
Similarly, the proposal of Kashvi International Ltd (KIL) to set up 0.3 mtpa iron ore pellet plant at Champadihi (Barbil) in Keonjhar district at an investment of Rs 56.21 crore can only see the light of the day after this rationalisation policy.
These projects are facing problems despite the fact that their water requirement is nominal and iron ore beneficiation and pelletisation projects are viewed as mineral conservation projects.
Though Orissa, which has 4 per cent of the country’s population, accounts for 11 percent of the nation’s water resources, water deficit is gradually emerging as a big problem in different areas of the state.
