Post News Network
New Delhi, March 11: Pellets Manufacturers Association of India (PMAI) has accused the state iron ore producers of cartelisation and jacking up prices of the ore through deliberate cutting down of supply.
Acting on the complaint, Union Mines Ministry has asked the Indian Bureau of Mines (IBM) to examine the entire issue and submit a report within a fortnight to the government.
The pellet industry has been arguing that merchant miners are not producing enough ore, which is disrupting operations.
Indian Bureau of Mines has been asked to examine the entire matter and issue necessary directions to the state government and private miners in order to resolve the problem, said a senior mines ministry official. Experts feel due to stress on steel sector, chances of cartelisation is high, implying higher prices.
“Directives should be given to the miners to produce up to environment clearance (EC) limits. At any rate, even if this is not possible, the concept of minimum production requirement, as is now being enforced in the case of new leases granted by auction, should also be imposed upon the miners,” PMAI said in a representation to the Mines Ministry.
The pellet industry is also pitching for e-auction of iron ore as is being done in other states including Karnataka and Goa so that cartelisation is prevented and a fair price emerges from the auction. The pellet industry of Orissa with a total capacity of 30 MT per annum provides jobs to around 30,000 locals.
In January this year, the government scrapped the export duty on iron ore pellets from 5 per cent in order to make it more competitive amidst subdued global environment.