Closure of Odisha mines to hit small biz
Updated: May 20, 2014 03:27:08pm
Bhubaneswar, May 20 (KNN) The small and medium industries which use iron ore as their raw material are likely to face scarcity, after the closure of 26 iron ore mines in Odisha by a Supreme Court order last week.
The order stated that the mines can resume production only when the state government renews leases. The move could adversely affect the steel industry including big units likeTata Steel and SAIL’s Rourkela and Durgapur plants, reports media.
At the beginning of 2014-15, domestic iron ore production for this financial year was estimated at 155 mt. In 2013-14 and 2012-13, production stood at 136 mt each.
Notably, in 2013-14, Odisha produced 72 mt of iron ore, of which 15 mt were from captive mines. This financial year, production is expected to decline to 29 mt.
As a result of the restrictions, iron ore exports from Odisha will be hit badly. Even the sponge iron and small steel plants from other states would also face a raw material crunch due to the closure of the mines.
The Odisha government has started the process of disposing of the mining lease renewal (MLR) applications of the 26 mines pending before it, on priority basis after the Supreme Court’s order.
Media report quoting state mines director Deepak Mohanty said, “We have recommended the state government to take in-principle’ initiatives in disposing of the 26 MLR applications on priority basis and it has started the process.”
According to him, the process would be completed within the six months’ time given by court.
The affected mines are Khandabandh, Katamati, Joda East, Joda West, Bamebari, Manmore, Guruda and Tiringpahar of Tata Steel, Bolani, Kalta and Barsuan of SAIL, Belkundi and Bagiaburu M-block of Odisha Minerals Development Company, Jurudi of Kalinga Mining Corporation, Jilling-Langalota of Essel Mining and Industries, Jaribahal of Patnaik Minerals and Naugaon of KJS Ahluwalia.
Odisha has a total of 56 iron ore mines, of which 16 have all renewals in place and can function normally. Out of the remaining 40, 14 can function because they are under deemed extension for the first time since grant of lease which is permissible under law.
The 26 mines which cannot mine now need to secure fresh lease extensions. (KNN Bureau)
The order stated that the mines can resume production only when the state government renews leases. The move could adversely affect the steel industry including big units likeTata Steel and SAIL’s Rourkela and Durgapur plants, reports media.
At the beginning of 2014-15, domestic iron ore production for this financial year was estimated at 155 mt. In 2013-14 and 2012-13, production stood at 136 mt each.
Notably, in 2013-14, Odisha produced 72 mt of iron ore, of which 15 mt were from captive mines. This financial year, production is expected to decline to 29 mt.
As a result of the restrictions, iron ore exports from Odisha will be hit badly. Even the sponge iron and small steel plants from other states would also face a raw material crunch due to the closure of the mines.
The Odisha government has started the process of disposing of the mining lease renewal (MLR) applications of the 26 mines pending before it, on priority basis after the Supreme Court’s order.
Media report quoting state mines director Deepak Mohanty said, “We have recommended the state government to take in-principle’ initiatives in disposing of the 26 MLR applications on priority basis and it has started the process.”
According to him, the process would be completed within the six months’ time given by court.
The affected mines are Khandabandh, Katamati, Joda East, Joda West, Bamebari, Manmore, Guruda and Tiringpahar of Tata Steel, Bolani, Kalta and Barsuan of SAIL, Belkundi and Bagiaburu M-block of Odisha Minerals Development Company, Jurudi of Kalinga Mining Corporation, Jilling-Langalota of Essel Mining and Industries, Jaribahal of Patnaik Minerals and Naugaon of KJS Ahluwalia.
Odisha has a total of 56 iron ore mines, of which 16 have all renewals in place and can function normally. Out of the remaining 40, 14 can function because they are under deemed extension for the first time since grant of lease which is permissible under law.
The 26 mines which cannot mine now need to secure fresh lease extensions. (KNN Bureau)
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