Bhubaneswar, May 5: Ahead of the resumption of operation in 29 mines in the state, the state government Tuesday fixed the modalities of pricing iron ore and asked the leaseholders to have better coordination with the local industries which faced shortage of raw material for the end-use.
“The mines leaseholders were told to have better coordination with local industries and help them in availing iron ore for the end-use. Discussion was also held to ensure the coordination over supply of raw material to local industries. The policy of 50:50 distribution was made clear at the meeting,” said director of mines Deepak Mohanty after a meeting between mines leaseholders, local industries and senior officials of the steel and mines department.
Earlier, the state government has made a policy saying that the mines leaseholders will supply 50 per cent of their ore production to local industries while they are free to sale the remaining portion in the open market. The policy has been made to ensure that the industries operating within the state do not starve for the raw material.
The state cabinet had earlier decided to supply iron ore to industries within the state through the state-owned Orissa Mining Corporation.
Mohanty also made it clear that though it was initially decided that the MoU-signed industries will only get priority to avail ore from the mines, now it has been decided that all the industries operating within the state would be entitled to get iron ore easily.
Mohanty said the meeting, chaired by secretary of steel and mines R K Sharma, has also made its stand clear over ore pricing. The pricing would be done on a monthly basis. The lessee’s selling price for the last month will be taken into account for fixing the price. “We will no longer insist on rates published by IBM, which are three to four months older and comparatively higher,” the director of mines said.
Stating that the response of the miners was positive to the changes made, Mohanty said both sides agreed to the government’s pricing decision and other matters.
“Several issues were discussed at the meeting. Since the MMDR (amendment) Act is being newly implemented, problems do arise. Industries are asked whether they have been getting their supplies regularly or not to which they replied in the affirmative,” said R L Mohanty, president of Eastern India Mine Owners Association. PTI
