Odisha govt modifies long-term ore linkage policy for local users

Bhubaneswar: Keeping in mind the problems faced by state-based mineral industries in terms of raw material availability, the Odisha government today modified certain provisions of the Long Term Ore Linkage policy.

The state cabinet meeting presided over by Chief Minister Naveen Patnaik approved the changes in the long term ore linkage policy proposed by the steel and mines department.

“The state Cabinet today approved the suggestions for modification in the long term ore linkage policy made by the allotment committee, constituted for determination of quantity to be assured to local industries,” Chief Secretary G C Pati told reporters after the meeting.

As per the policy, the state-owned Odisha Mining Corporation (OMC) was authorised to provide upto 50 per cent of its iron ore production to local end-user plants in state.

The quantity of iron ore to be offered to local industries under the long term linkage policy was modified from 50 per cent to upto 70 per cent with permission of the OMC.

However, OMC would fix the exact quantity to be distributed taking into account its production and the demand from local end-users.

“This will make more iron ore available to the end user industries in the state,” Pati said.

In a bid to encourage the captive lessees to utilise their captive production capacity in full, he said “While deciding the linkage quantity, the authorised production capacity of all its own lease and the quaint of long term purchase agreement made by the end users with other lessees within the state, is to be excluded from calculation.”

“Non-MoU signed public sector undertakings (PSUs) and small sized end user plants, which were not eligible for signing MoUs due to small capacity level, is also to be made eligible for long term linkage facility,” steel and mines secretary R K Sharma said.

The cabinet also approved a proposal of allowing mineral quantities not disposed through long term linkage, to be offered in the national e-auction, Pati said.

However, there was no change in the provisions for the supply of chrome ore in the state, he said while replying to a question and added the local end users would continue to get 50 per cent of the OMC’s chromite production as earlier.