Jindal Steel and Power chairman Naveen Jindal today urged Odisha government to take steps for reduction of iron ore price as the steel industry is facing difficulties under the changed circumstances.
"Odisha Government should take up the issue with Union Government to open and run the closed iron ore mines through ordinance or other means, so that iron ore production increase and its price comes down," Jindal told reporters after meeting Odisha chief secretary AP Padhi.
Stating that closure of iron ore mines and the increase in iron ore price has affected steel industry in the state, Jindal said: "The steel industry in Odisha is importing coal and limestone. If iron ore is to be imported then steel industry in Odisha will not survive. Odisha industries are not being able to compete in the international market."
He claimed that except three steel companies, all other steel companies has become insolvent and gone to NCLT. If iron ore price is not brought down, it will impact these companies too, Jindal said.
JSPL has invested more than Rs 33,000 crore at Angul in Odisha. "If we wont get iron ore at affordable price, how will the company become competitive and give the thousands of jobs that has been created, he asked.
If iron ore mines become operational, lakhs of people will get employment and the state government will also get royalty and fund in DMF, Jindal said adding that it is very important to make the closed iron ore mines operational as soon as possible.
He also demanded for increasing availability of railway rakes for transfer of raw material for industries.
"We are not able to run the plant in full capacity because of unavailability or railway rakes. Steps should be taken to make improve railway rakes availability," he said.
Similarly he also demanded to increase coal production by MCL to make coal available for power generation.
Jindal also met Odisha Steel and Mines minister Prafulla Kumar Mallik.
On the Union Budget, 2018-19, Jindal said, "Reduction of corporate tax for companies having turn over less than Rs 250 crore is a good step. Spending on infrastructure like road, railway and highways is also a welcome step. This will increase steel demand".
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