Sponge units to apply afresh for raw material linkage

The sponge iron manufactures in the state have been told to apply afresh to the Orissa Mining Corporation (OMC) for getting raw material linkage.

The state government has agreed to consider their application and the final decision on giving them the linkage would be taken by the board of directors of OMC.

This came out of a meeting of the Orissa Sponge Iron Manufacturers’ Association (OSIMA) with the state industry, steel and mines minister, Raghunath Mohanty here today.

However, the government made it clear that the sponge units must draw a plan for utilisation of fly ash through cluster development. Besides, they should modernize their plants and equipment in a bid to reduce water use and pollution.

Talking to the media after the meeting, Mohanty said, the sponge units in the state were given the option to apply to OMC for raw material linkage in 2006. Out of 104 units, 53 had applied for the linkage.

Out of the units who applied for raw-material linkage, thirty one units didn’t lift any material, after which their linkage was canceled. However, twenty two units still continue to lift iron ore from OMC.

Keeping in view the demands of OSIMA, it was decided to allow all the sponge iron units to apply for raw-material linkage afresh. During the discussion, the representatives of the association drew the attention of the minister for grant of joint mining lease to a group of sponge iron units for which OSIMA has applied to the steel and mines department.

The mine would operate on no profit-no loss basis and would meet the requirement of the members forming the group. The government is reported to have assured the association to examine the proposal. On the issue of waiver of tax on fly ash products, it was decided to seek the opinion of the state finance department. The association urged the government to fix the transportation norm for the raw material.

Mohanty said, OSIMA has sought land for dumping and disposal of char. The district level fly ash mission would be asked to remove various hurdles coming in the way of disposal and utilisation of fly ash generated from the sponge iron units, he added.