In its bid to encourage establishment of mineral based industries in the state, Odisha government today approved a long term ore linkage policy to supply required quantity of raw materials to the local industries.
"In a view to supply raw material to local industries, the government has decided to supply raw materials to such units through the state owned Odisha Mining Corporation (OMC)," Chief Secretary G C Pati told reporters after the State Cabinet meeting approved a proposal in this regard.
Stating that the decision will solve the problems faced by the MoU signed companies, the chief secretary said the long term ore linkage will be effective for five years.
The state government have already signed MoUs with 49 companies for setting up steel plants in Odisha of which 31 projects have already started production, fully or partially.
Fifty per cent of the iron ore production in Odisha is to be earmarked for long term linkage with MoU signed industries which have already been established and started full or partial production, Pati said.
The quantity of ore to be assured to an industry under linkage policy, will be determined by the committee comprising of officials of Industries department, director of mines, OMC and IPICOL (Industrial Promotion Infrastructure Corporation of Odisha limited).
"Price of such long term linkage will be fair market price as discovered through National E-Auction conducted by OMC for the remaining 50 per cent quantity," Pati said.
In case of Chrome ore, the chief secretary said, 70 per cent of the ore production will be earmarked for long term linkage. The Cabinet has also approved the model sales agreement for long term linkage and price, he said.
Pati said the Cabinet was of the opinion that similar mechanism will also be devised by the OMC in other minerals depending upon requirement of mineral-based industries in the state.
"With the long term linkage in place, mineral based industries in the state will get further boost thereby providing more employment and enhanced revenue," Pati said.
The local industries, mostly small ones, were frequently making allegations that they were denied raw materials as the major mines prefer to sale away their production outside the state for more price.
