Bhubaenswar, Dec. 29: The steel industry, which has been in a state of turmoil following the closures of mines, is hopeful of a turnaround in the coming year.
The Odisha government has initiated the process of auctioning virgin mines and opening the closed ones.
However, the industrial houses are of the opinion that entrepreneurs, who have already set up their units, should be given some preference during the auction of mines, so that they can compete in the international market.
Kalinga Nagar Industries' Association president P.L. Kandoi said: "Industrial houses located here should have a level-playing field. The Odisha government has accepted the present system of taxation on the ores, set by the IBM. But, it is not helping the cause. The government should adopt a fixed royalty system."
Jindal Steel and Power Ltd chairman Naveen Jindal, who met the state government officials, including chief secretary Aditya Prasad Padhi, yesterday at the secretariat, said: "The companies having end-use plants in the state should get priority in the bidding process."
Welcoming the Odisha government's initiatives to go for auction of mines, Jindal said: "Giving priority to the state-based plants, which have invested thousands of crores of rupees here, will mean benefits for Odisha in terms of creation of more employments and socio-economic development of the state. People of Odisha will not get benefits if companies start investing in other states," Jindal said.
Odisha plans to auction 12 virgin mines and collect Rs 10,000 crore in the next fiscal. Out of the 102 working mines, 52 have started resuming their operation.
Jindal also indicated that the company would take part in the iron ore auction. He also stressed on the rationalisation of the tax rates of iron ore.
"In Odisha, the highest tax is being levied even on the low-grade ore," he said.
He also raised the issue of steep tax on water. "There should also be relief on water charges. Water charges on steel units should be on actual consumption instead of allocation," he said.
