Post News Network
Bhubaneswar: The state government Thursday decided to set up a separate directorate of steel (DoS) to resolve problems faced by investors and frame policy initiatives for utilisation of the state’s untapped potential in the steel sector.
A meeting of the state cabinet chaired by Chief Minister Naveen Patnaik at the secretariat approved a proposal in this regard. “Although the state government has a directorate of mines and a directorate of geology, it does not have a directorate of steel. The cabinet today approved a proposal for creating a separate directorate of steel,” said Chief Secretary AP Padhi after the cabinet meeting. The new directorate of steel will be operational from April 1, he added.
“The state government has so far executed 49 MoUs in the steel sector – including 10 mega projects – and 33 of these projects have already started production. Through the non-MoU route, 30 iron ore-based industries have been set up. However, there was no separate authority to deal with investors in the steel sector,” said the chief secretary.
An additional secretary in the steel and mines department would function as the director of steel and would be authorised to take expert opinions in the field, added Padhi. The proposed directorate of steel would appoint a senior and experienced expert from the steel sector as advisor on steel and would engage consultants to further boost the state’s steel industry, said sources.
The DoS move comes after the government realising that mega projects like ArcelorMittal and Posco could not be brought to gainful completion in the absence of special attention to the steel sector, pointed out a senior official.
The cabinet also approved a proposal to amend the Long-Term Ore Linkage Policy (LTL). “The state government has authorised Orissa Mining Corporation to amend the penalty provision of the sale agreement of notification dated September 17, 2014,” Padhi said. OMC was allowed to execute sale agreement with long-term buyers of ore, which should not be inconsistent with the notification’s provisions.
While the notification earlier had a provision to impose penalty on entities not lifting the agreed amount of ore, now, after the amendment, such entities would pay penalty on the volume of ore not lifted and not on the total agreed volume of the mineral.
“The decision will help improve the ease of doing business for buyers of iron ore and chrome ore under LTL,” Padhi added.
