Odisha CM stresses on mineral reforms to ensure uninterrupted ore supply
Dec 09, 2020
Bhubaneswar (Odisha) [India], December 9 : Odisha Chief Minister Naveen Patnaik on Wednesday proposed reservation of expired working mineral blocks to ensure uninterrupted supply of ore to the end-user industry.
This comes as Patnaik discussed with Union Minister of Coal, Mines and Parliamentary Affairs Pralhad Joshi and Union Minister Petroleum, Natural Gas and Steel Dharmendra Pradhan and senior officials over video conference on the issues that have emerged from the recently conducted auction of mines, further mineral reforms and other issues related to the mineral sector in the state.
Odisha has been one of the first states to successfully conduct an auction of mineral blocks in accordance with the orders of the Supreme Court. However, there have been some glitches in commencement in mining operations leading to disruptions in production and dispatch leading to a shortage of minerals for end-user industries and price rise.
In the conference, the Chief Minister emphasised that such disruptions and uncertainties in production and dispatch are undesirable. "Shortages of ore and a resultant high price has posed a challenge for the Sponge Iron plants, Small and medium-size steel plants."
This has affected the revenues of the state and the employment of the people dependent on the sector, he said.
Suggesting that the state and Central Public Sector Undertakings can play a very important role in maintaining the level of supply of ore to the end-user industries at such critical moments, he said: "Their strong presence in the Mineral market will ensure smooth supply at reasonable prices. This shall go a long way in mitigating constraints faced by the Ministry of Micro, Small and Medium Enterprises in this sector."
"Patnaik proposed reservation of some of these expired working mineral blocks under provisions of section 17A of the MMDR Act to state PSUs like OMC to ensure uninterrupted supply of ore to the end-user industry," as per an official statement.
On one of the longstanding issues of Odisha and other state governments -- the revision of royalty for minerals other than coal, which has been pending since 2017, the Chief Minister requested for early action in this regard as this will greatly benefit the state, especially in a post-Covid scenario.
Patnaik requested the central government for an early decision on the issues discussed as the revenues of the state and employment of the people at large are involved.
