OMC ready to transfer Koirabhanjpali mine to Idcol

State owned mine PSU Orissa Mining Corporation (OMC) is ready to spare its Koirabhanjpali iron ore mines in favour of another PSU-Industrial Development Corporation of Orissa Ltd (Idcol).

“We have informed the state government that we are ready to transfer the Koirabhanjpali mine to Idcol. Now, the state government has to take a call on mine transfer after getting the necessary approval from the Government of India. The Koirabhanjpali mine is quite insignificant for OMC's operations compared to our other bigger mines like Daitari and Gandhamardhan. So, we are willing to give up this mine if it serves the purpose of Idcol,” said a top official of OMC.

He, however, denied any transfer of chromite mine owned by OMC. However, the state minister for industry and steel and mines, Raghunath Mohanty, said, the state government is actively considering a proposal for transfer of iron ore mines from OMC to Idcol and allot chromite mines to Idcol Ferrochrome Alloys Ltd (IFAL). The state government is also in discussions with Central PSU giants like Steel Authority of India Ltd (SAIL) and National Aluminium Company Ltd (Nalco) which have evinced interest in picking up stakes in IFAL and Idcol Kalinga Iron Works Ltd (IKIWL), the minister informed.

The Cabinet Committee on Disinvestment of the state government had requested Central PSUs for joint venture of IKIWL and IFAL. The state government had also decided to appoint a transaction advisor for restructuring of these two firms. The transaction advisor would also manage the process of disinvestment of IFAL and IKIWL. While the modernization of IFAL needs Rs 250 crore, Rs 2,500 crore is required for the modernization of IKIWL.

At the meeting of the Public and Cooperative Enterprises Restructuring Committee (PCERC) on September 23, 2010, it was decided that Idcol would continue to negotiate with the Central PSUs for the disinvestment of IFA and IKWL.