PTI reported that, in a bid to ensure uninterrupted supply of raw materials to industry in the state, the Orissa government asked Orissa Mining Corporation to reserve 70% of the iron ore and 80% of the chromite ore excavated from its mines for local units.

This was decided at a high level meeting chaired by state finance minister Mr Prafulla Ghadai and attended by steel and mines minister Mr Raghunath Mohanty, besides other senior officials, including chief secretary Mr BK Patnaik.

The meeting was held in the wake of certain industries expressing displeasure over the state government's inability to provide adequate raw materials to them, even as it exported the bulk of its mineral output to other states and abroad.

Mr Mohanty said that OMC, which has a total of 35 iron ore and chromite mines, will henceforth reserve 70% of its iron ore lumps and 80% of its chromite ore output for industries within the state.

He added that however, the state owned company is still free to export 70% of its output of iron ore fines to other states and even abroad, as the state's budding steel industry does not have the required technology for the use of the fines.

Industrial units in the state, mainly those producing sponge iron and cast iron, recently met chief minister Mr Naveen Patnaik and said they would go out of operation unless the government came to their rescue.

A proposed ban on the export of iron ore in view of the growing requirement of the steel industry in the state was also discussed at the meeting. The state has only 5,074.945 million tonnes of iron ore, half of which can be mined. However, no decision could be taken on the proposed ban at the meeting.

Mr Mohanty also said that most of OMC's mines were either closed or suspended after it failed to garner statutory clearances from the Ministry of Environment and Forests.

(Sourced from PTI)