Post News Network
Bhubaneswar, April 28: The state government will bring in modifications in certain provisions of the Long Term Ore Linkage Policy (LTOLP) for smooth availability of raw material to state-based mineral industries.
Chief Secretary GC Pati said, “The state cabinet today approved the suggestions for modifications in the long term ore linkage policy as suggested by the allotment committee to determine quantity of raw material to be assured to local industries.”
As per the changes, the quantity of iron ore to be offered to local industries under the long term linkage policy was modified from 50 per cent to up to 70 per cent with permission of the OMC.
“The move will make more iron ore available to the end-user industries,” Pati said.
However, OMC would fix the exact quantity to be distributed taking into account its production and the demand from local end-users.
To help the lessees to fully utilise their captive production capacity, the authorised production capacity of all its own leases and the quantity of long term purchase agreement made by the end-users with other lessees within the state, is to be excluded from calculation.
Steel and mines secretary RK Sharma said that PSUs who have not signed MoUs and small sized end-user plants that were previously not eligible for signing MoUs due to small capacity level, will also be eligible for long term linkage facility.
As per the cabinet decision, quantities not disposed through long term linkage are to be offered in the national e-auction, Sharma said.
However, no changes will be made to the provisions for the supply of chrome ore in the state. Sharma said, “Local end-users would continue to get 50 per cent of the OMC’s chromite production as earlier.”
