In a significant move to ensure availability of raw material to industries in Odisha, the State Government has decided that it would be mandatory for mining lessees to sell 50% of iron ore lumps and fines extracted by them but not to put to captive use to standalone mineral based industries located in the State.
A letter written by the Principal Secretary of Steel and Mines Mr Rajesh Verma to the Director of Mines said that "These instructions shall be effective from the month of December 2012 and shall remain in force until further orders."
Official sources said that this decision was taken in view of the acute shortage of raw materials faced by industries in the State, especially steelmaking units.
The department has authorized the Deputy Directors of Mines and Mining Officers to issue notices to the lessees in their respective circles in this regard. Asking the Director of Mines to issue necessary instructions to field-level functionaries to ensure compliance with the order, the letter has sought an action taken report from the former within a week.
Expressing serious concern over the crisis of raw materials faced by the State based industries, the letter said that it has brought many of the units to the verge of their closure. There is all likelihood of such a situation having adverse socioeconomic consequences such as unemployment, loss of wages, etc.
The letter added that "Besides, such a situation will also have an adverse impact on investment climate and the industrialization process in the State, thereby hampering the growth of the economy of the State."