All Odisha Steel Federation (AOSF) urged the state government and miners to liquidate idle iron ore stock and thereby resolve what it claims the “artificial crisis of iron ore”.
AOSF claims that there is 100 million tonne (mn t) of iron ore stacked up at different mine leases in the state and even the Shah Commission of enquiry has drawn the attention of the government and mine owners on this matter.
AOSF, which represents interest of 200-odd steel and sponge iron makers, alleged that the lessees are determined not to sell this stock to the local steel making units and want to export them.
It alleged that export of ore would fetch miners higher prices. AOSF is said to have explained its case with the visiting Shah Commission.
The commission members have reportedly suggested to the state government that interests of local steel making units have to be protected and their raw material needs to be addressed.
AOSF is also reportedly not in favour of the state government’s decision to bring new and surplus mineral bearing areas under control of its PSU- Odisha Mining Corporation (OMC).
The industry body feels that the move would lead to so much of a burden on OMC as it does not have the requisite infrastructure to handle and operate so many mines together. This will again result in poor and inadequate supply of iron ore to the existing units.
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