BHUBANESWAR: Chief minister Naveen Patnaik on Wednesday proposed reservation of expired working mineral blocks in favour of state PSU like Odisha Mining Corporation (OMC) to ensure uninterrupted supply of ore to the end-user industry.
During a discussion with Union minister of coal and mines Pralhad Joshi and Union petroleum minister Dharmendra Pradhan over videoconferencing, the chief minister also emphasized on further mineral reforms to ensure uninterrupted supply of ore to the industry and safeguarding the employment and state revenues.
Issues pertaining to the recently-auctioned mines were also discussed in the virtual meeting where Pradhan emphasized on early operationalization of the auctioned iron-ore mines in the state and resolving their issues. Pradhan said early resolution of issues faced by the mining lessees will ensure seamless availability of raw material to the end user. It would also result in reducing the price of iron ore, which has gone up substantially in the last one month due to adverse market sentiments, primarily from reduced supply of iron ore in Odisha from the recently auctioned mines.
Official sources said out of the recently auctioned 24 mines in Odisha, only five lessees have been able to start production and dispatch till date, a key reason behind shortfall in iron ore supply in the country. Total iron ore production during January to November, 2020 is estimated at 98 milion tonne (MT) against 123 MT produced during January-November, 2019.
Naveen during the meeting said though Odisha has been one of the first states to successfully conduct auction of mineral blocks, there have been some glitches in commencement in mining operations leading to disruptions in production and dispatch leading to shortage of minerals for end user industries and price rise.
Expressing concerns over disruptions and uncertainties in production and dispatch of iron ore, the chief minister said shortages of ore and resultant high price has posed a challenge for the sponge iron plants and small and medium size steel plants, which has also affected the revenues of the state and the employment of the people dependent on the sector.
Naveen urged the state and Central PSUs to play key role in maintaining the level of supply of ore to the end user industries at such critical moments.
During the meeting, the chief minister also brought the issues of revision of royalty on coal and other minerals pending since past several years.