End-use plants hit by raw material shortage in Odisha

With mega industries, mainly steel units facing acute shortage of raw materials, the Odisha government has taken steps to tackle the problem by augmenting mineral production.
While steel plants have highlighted their inability to fully utilise their installed capacities due to severe raw material shortage, government's revenue earnings from mining sector has declined, Odisha's Steel and Mines Minister Prafulla Kumar Mallick said today.
"We are taking necessary steps to ensure availability of adequate raw materials for the industries and meet the target of Rs 6,500 crore revenue from mining set for the current fiscal which at present shows a shortfall of around Rs 1,200 crore," Mallick said.

Stating that he held a meeting earlier this week as part of efforts to solve the problem pertaining to raw material, the Minister said 33 steel companies with whom state government had signed MoUs had been called for discussion while representatives from 11 of them turned up.
"If necessary, another meeting can be held to sort out the problem. We also want to discuss the issue with those who failed to attend the recent review meeting," he said adding companies have been asked to present their case on iron ore requirement before the department secretary.
The Minister said that the companies raised the issue of high cost of iron ore being purchased from Odisha Mining Corporation (OMC) through e-auction and mentioned about difficulties in transportation of minerals.

Representatives from mega industry players including Jindal Steel & Power Limited (JSPL), Essar Steel and Bhusan Steel who attended the meeting, sought early solution to the raw material problem, Mallick said.