Odisha raises cap on iron ore output by 10%

The relaxation in ore production cap is expected to ensure greater availability for state industries

Odisha, the country’s biggest iron ore producer, has raised the cap on ore output from Joda and Koira circles to 57 million tonnes (mt) for 2013-14, about 10 per cent higher than the ceiling of 52 mt fixed for 2012-13.

Out of the current year’s limit, 44 mt production has been prescribed for Joda and 13 mt output for Koira sector. Both Joda and Koira are the two most prolific iron ore producing circles in Odisha, contributing to over 80 per cent of the total ore output.

“This has been done keeping in view the industry demand. In the last financial year, Joda reported production of 37 mt, against a cap of 40 mt, while iron ore production in Koira stood at 11.8 mt against stipulated cap of 12 mt,” said Steel & Mines Secretary Rajesh Verma.

The relaxation in iron ore production cap is expected to ensure greater availability of the ore for industries, especially units within the state. The iron ore demand for local end use industries is estimated at 20 mt per annum (mtpa).

The state government had taken a decision to cap iron ore output in May last year following concerns over rampant extraction of ore and its adverse impact on the environment. The decision was guided by the Supreme Court order that had raised grave concern over the environmental damage caused by iron ore mining in Karnataka’s Bellary region.

The M B Shah Commission, constituted by the Centre to investigate illegal mining activities, had also urged the Odisha government to impose curbs on iron ore output to ensure that the finite resource is left for posterity.

The state government had formed an 18-member committee chaired by state chief secretary B K Patnaik to recommend the maximum quantity of ore that can be extracted from Joda and Koira. The recommendation was to be made factoring in environmental concerns as well as carrying capacity of existing road and rail infrastructure in the two mine-rich belts.

In addition to the chief secretary, other top state officials like secretaries of departments of steel & mines, commerce & transport, works and environment, director (mines), director (environment) and member secretary of the state pollution control board were members of the panel.