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| Orissa not committed to give iron ore forever |
| Press Trust of India / Bhubaneswar Jul 17, 2009, 13:29 IST |
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Indicating shortage of iron ore in near future, Orissa government has said it was not committed to provide raw material linkage to steel plants on long term basis.
"Orissa government has nowhere assured industries in the MoUs to provide raw material supply on long term basis.
The industries could arrange iron ore or any other raw materials required for steel making from other sources," Industries and Steel & Mines minister Raghunath Mohanty told the assembly last night while replying debate on the budget demand of the departments.
Though the state had entered into agreement with at least 49 steel makers for setting up units in Orissa, it could face scarcity of iron ore, the basic raw material required for steel making, if all the units started production to full of their capacities of 76 MTPA.
The state has a reserve of 5300 million tons of iron ore of which 3000 MT had already been leased out while many industries were yet to come up to the production stage. Of the 49 MoUs, only 28 units had gone to partial production.
"We doubt, the state's iron ore reserve could be finished only in seven years in case all the 49 units started production to their capacities," Opposition Chief Whip Prasad Harichandan of Congress said.
Harichandan alleged that mindless mining and rampant theft of valuable minerals could lead Orissa into a mineral less state from being one of the richest state in terms of mineral deposits.
"I want specific reply from the government on its plan on how to tackle situation when the iron ore reserves were finished," he said.
Stating that amount of the state's mineral reserve were being re-accessed, the minister said as much as 10.4 million ton of fresh iron reserve had been located at Dholta hills in Sundargarh district while one million ton of the same mineral was found deposited at Potagarh hills in Nawrangpur district.
Similarly, the minister said as much as eight million tons of bauxite was located at Ushabali range in Kandhamal district while one million ton of limestone (required for cement making) was located at Ramuguda near Khariar in Nuapada district.
This apart, about 70 million ton of coal of E, F and G grade was found reserved at Ib valley region in Jharsuguda district.
Three different agencies like Geological Survey of India, Indian Bureau of Mines and directorate of Geology, Orissa, were engaged in a survey of new mineral deposits in the state, the minister said adding that the government had issued leases for mining of major minerals to 602 companies or persons.
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