Odisha enacts the supply of iron ore for domestic steel units

Bhubaneswar(ScrapMonster): The state government of Odisha, declared that the government would make iron ore available, for all the state based domestic steel manufacturing plants, even the ones which have not signed the momentum of understanding with the government. The iron ore will be supplied using the mine leases, which are being held by the Odisha Mining Corporation, which is owned by the state government.

The Director of mines department, Deepank Mohanty stated that, the  government has already made a framework of 50:50 resolution, according to which the iron ore will be will be available to all the Odisha based steel manufacturing plants, which includes the steel units outside and inside the MoU. All the industries in the state have accepted this idea initiated by the state government.

He also stated that the government had called a meeting for the executives of the steel plants, those which have signed the MoU with the government. The meeting was authorized by the Steel and Mines Minister, Prafulla Mallick. The meeting didn’t discuss about the renewal of lapsed MoUs of some of the steel companies.

The Odisha Mining Corporation had recently agreed to supply the state based steel manufacturing plants with 2.5 million tonnes of iron ore, in the January-March quarter of this financial year, in respect to the 50:50 resolution plan which was announced by the state government in the years 2012.

According to the resolution, which was framed on December 2012, the standalone miners should at least provide 50 percent of their iron ore production to the state based steel industries. Later the resolution was also made applicable to the Odisha Mining Corporation.