Odisha to provide iron ore linkage to local industries

With many small and large mineral-based industries facing a shortage of iron ore, the Odisha cabinet on Tuesday approved the supply of 70 percent of the ore mined in the state to local industries.

Modifying the long-term ore linkage policy to state-based industries, the government increased the iron ore supply from 50 percent to 70 percent.

The government has decided to supply iron ore through the state-owned Odisha Mining Corporation (OMC).

"The quantity of iron ore to be offered under the long-term linkage is to be modified from 50 percent to upto 70 percent, with OMC fixing the exact quantity taking into account its production and demand from local end-users," chief secretary G. C. Pati told reporters after the cabinet meeting.

The cabinet approved that public sector undertakings and small-sized end-user plants, which were not eligible for signing MoUs due to low production capacity levels, would also be able to obtain the mineral under the long-term ore linkage policy, said Pati.

An industry official said the state government has signed memorandums of understanding with 49 companies for setting up steel plants in Odisha, of which 31 projects have already started full or partial production.

The quantity not disposed through long-term linkage would be offered for sale at the national e-auction.

Local industries, mostly small industries, allege that they are denied raw materials as major mines prefer to sell their produce outside the state for a better price.