The Inter-Ministerial Group (IMG) formed by the Odisha Government, submitted its report on supply of raw material in local metal industries, to the Chief Minister, Naveen Patnaik, on Thursday July 18, 2013. The report will be further sent to the State Cabinet for approval. The report was supposed to be submitted by 31st January, 2013, but its wait for decision on Karnataka mining by Supreme Court delayed the report submission.
The State Finance Minister, Prasanna Kumar Acharya said, “We have formed a detailed report on long-term raw material supply to metal companies who do not have captive mines. The report has been submitted to the Chief Minister and will be discussed in the state cabinet further to arrive at a definite decision.”
The ministerial panel had given several recommendations to the state government regarding flawless supply of raw material in the local industry. They suggested that the local plants should get raw material first and thereafter it should be allowed to be exported. This is applicable to all the private mines of the state as well as the PSUs (Public Sector Undertaking) like Odisha Mining Corporation (OMC).
The Directorate of Mines and the Directorate of Geology had submitted a report on production, availability and consumption of minerals in state, to the ministerial panel before the report on supply of raw material in local industries was finalized.
IMG had turned down the demand for 50% discount on market rate in raw material by the local industry in its report. However, the ministerial panel has suggested forming a price-committee which will determine raw material prices for the local industry. The price committee will be consisting of members such as OMC CMD, Director of Mines, and a senior official from the Directorate of Geology. A separate committee for determining the demand-supply scenario will also be formed.