1 NOV, 2012, NAGESHWAR PATNAIK, ET BUREAU
BHUBANESWAR: The recent moves by the Odisha government restricting mining for captive consumption and routing the rest of the mineral supplies through the Odisha Mining Corporation (OMC) have spread panic among both the end-user industry and the mining sector.
As per the government's latest move, mineral from the existing mines can only be used for captive consumption, that to for 30 years. This has put a question mark on the fate of around 100 standalone mines that significantly contributed to the mining boom. Mineral-based industries now stare at a bleak and uncertain future as they do not have alternative sources.
Moreover, the fate of more than five lakh families - directly and indirectly engaged in these mines - hangs in balance. The state itself would be deprived of huge revenue from the mining sector, experts said.
"Odisha has witnessed higher growth rate in the last decade or so thanks to the mining and metal industry. But the mines department's policy to allow mining only for captive use on the alibi of curbing the illegal mining will end this growth story sooner than later," said B K Mohanty, former director, Mines.
The state government's recent move to set up a three-member ministerial committee to recommend a policy for smooth supply of ore to the Odisha-based industries through OMC has also not been received well by the industry, given the poor track record of the state miner. The industry points to the OMC's inability to raise adequate quantity of ore to feed the existing steel and sponge iron units. The PSU, which produces around 7.5 million tonnes of iron ore, has failed to meet demands of the new customers. Besides, the inefficiency of the OMC can be gauged from the fact that 22 of 32 iron ore mines under its possession are shut the rest are running at 60% to 65% capacity.
Mohanty also said that the mines department has come out with a spate of resolutions that are legally incorrect and would not stand the scrutiny of the court. "It appears that all these resolution are more of a panic reaction than well-thought out plan by the mines department in the wake of the Justice M B Shah commission's probe into illegal mining," he remarked.
BHUBANESWAR: The recent moves by the Odisha government restricting mining for captive consumption and routing the rest of the mineral supplies through the Odisha Mining Corporation (OMC) have spread panic among both the end-user industry and the mining sector.
As per the government's latest move, mineral from the existing mines can only be used for captive consumption, that to for 30 years. This has put a question mark on the fate of around 100 standalone mines that significantly contributed to the mining boom. Mineral-based industries now stare at a bleak and uncertain future as they do not have alternative sources.
Moreover, the fate of more than five lakh families - directly and indirectly engaged in these mines - hangs in balance. The state itself would be deprived of huge revenue from the mining sector, experts said.
"Odisha has witnessed higher growth rate in the last decade or so thanks to the mining and metal industry. But the mines department's policy to allow mining only for captive use on the alibi of curbing the illegal mining will end this growth story sooner than later," said B K Mohanty, former director, Mines.
The state government's recent move to set up a three-member ministerial committee to recommend a policy for smooth supply of ore to the Odisha-based industries through OMC has also not been received well by the industry, given the poor track record of the state miner. The industry points to the OMC's inability to raise adequate quantity of ore to feed the existing steel and sponge iron units. The PSU, which produces around 7.5 million tonnes of iron ore, has failed to meet demands of the new customers. Besides, the inefficiency of the OMC can be gauged from the fact that 22 of 32 iron ore mines under its possession are shut the rest are running at 60% to 65% capacity.
Mohanty also said that the mines department has come out with a spate of resolutions that are legally incorrect and would not stand the scrutiny of the court. "It appears that all these resolution are more of a panic reaction than well-thought out plan by the mines department in the wake of the Justice M B Shah commission's probe into illegal mining," he remarked.
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