Raghunath Mohanty

Bhubaneswar, Jan. 4: The state government today decided to reserve minerals explored by the Orissa Mining Corporation (OMC) for industrial units in the state.

The OMC will allocate 70 per cent low-grade iron ore to the state-based industries. It will be allowed to send 30 per cent of its production outside. However, in case of fine grade iron ore, local units will get 30 per cent and the remaining will be exported.

In the case of chromite, the OMC has been asked to provide 80 per cent of its chromite production to domestic units. It can send the remaining quantity outside the state.

“The decision will help value-addition of ores and help the state’s economy in a big way,” said finance minister Prafulla Ghadai after a high-level meet. Steel and mines minister Raghunath Mohanty, too, was present at the meet. The minister said that the prices would be decided keeping the international market in view.

Mohanty said: “The decision will not bring any loss to the state exchequer. While the state produces 35 million tonne of iron ores, it’s requirement is 20 million tonne. Of this, the state-run mining corporation produces three million tonnes.” The mineral-based industry in the Kalinganagar area, the industrial hub of the state, requires 24 lakh tonnes per annum.

Mohanty said that the corporation has been asked to prepare a 20-year perspective plan for the growth of mineral-based industries in the state. “The government will further improve the mining technology so as to maximise exploration of ores in the state.”

The Kalinga Nagar Industrial Association president P.L. Kandoi, however, was guarded in his response to the government’s decision. The association would meet tomorrow to discuss the matter. “The prices should be fixed for a period of three years and should not be left to the international market.”

The Association (KIA) last month met government officials and drew its attention to 11 steel-based industrial units in the Kanlinga Nagar area in Jajpur district.

They had said that shortage of raw material and prohibitive cost had brought pressure on the factories. They had demanded that if the government did not supply minerals at a concessional rate, the units would be forced to close down their operation.