The Odisha government assured the steel majors raising projects in the state that they would be given preference during the auction of non-coal minerals like iron ore,chrome ore and dolomites.
“During auction of non-coal blocks, the state government has been considering giving preference to state-based steel industry, which has already made substantial investment and generated employment in the state”, the state chief secretary, Gokul Chandra Pati, told the top executives of major steel players on Thursday.
Pati also informed them the government is also actively considering giving the right of way for laying underground water pipeline/slurry pipeline to expedite project work.
The steel companies have invested more than R 1,25,000 crore in the state, generating about one lakh employment.
Top executives of steel companies, who met the chief secretary on Thursday, expressed their concern over the non-availability of iron ore, high ore prices, unreasonable water charges, and rigging of truck freight rates in Odisha .
Led by the Indian Steel Association(ISA) secretary general Sanak Mishra, the delegation included, among others, managing director of Tata Steel Narendran, chairman of Jindal Steel & Power Naveen Jindal, chief advisor to Mesco Steel Priyabrat Patnaik and CEO of Essar Steel, Odisha project, RK Mittal. They discussed with Pati problems their projects ahve been facing in the state.
The delegates urged the government to support the industry through administrative/legislative measures to resolve the challenges experienced by the Odisha steel industry which is going through a rough patch with all the major players incurring major losses, the delegation members said.
The ISA members pointed out that the availability of iron ore and chrome was very low, thus leading to high prices. They suggested enhancing iron ore production by Odisha Mining Corporation (OMC) and merchant miners and allocation of iron ore and chrome by OMC to steel plants on a priority basis.
The industry leaders urged the government to take firm steps to curb the cartelisation in road transportation. The initiative taken by the state government for e-auction of road transportation contracts would rationalise the transportation rates and make Odisha steel producers more competitive, they observed.
Demanding that the water charges should be as per actual usage and not as per allocation, they suggested that the proposed one-time infrastructure charge of R 2.5 crore per cusec should not be imposed on the industry.
The delegates also urged the government to expedite approvals through monitoring of projects. “The issues discussed with the chief secretary have seized his attention and we are hopeful of immediate and sustainable solutions,” said Naveen Jindal, chairman of JSPL after the meeting. Tata Steel MD TV Narendran said, “During the next meeting issue-wise discussions with the government will be taken up at the highest level and I am confident that the Odisha steel industry would become stronger.”
For Updates Check Commodity News; follow us on Facebook and Twitter