Ranchi: When the state government tries to seduce investors in cars, food processing, clothing and other sectors through industrial Jharkhand policies and newly approved investments in 2021, most of the state steel producers, who do not have prisoners.
Iron ore mines, has been looking for government intervention in ensuring the supply of seamless raw materials for production.
Front ranking steel manufacturing companies based in Bokaro and Girech, which produces pellets, iron cables, channel pipes and TMT bars, have claimed production inhibited due to the delay in the Mining of State Mining in renewing the rental of states of iron ore mine.
Manufacturers estimate that steel production in Jharkhand has dropped by almost 26% of the last fiscal.
At TA-2021, the state produces steel of 20.8 million tons (MT) compared to 28.2 mt in 2019-20 FY.
“There is little or no iron ore output from the merchant iron ore mine.
The Merchant Iron Ore rented at Jharkhand expires in 2020, and last year, this mine has not produced ore that leads to lack of acute iron ore for steel producers In the state.
This creates a big challenge for steel producers, “said management of leading steel making companies, requesting anonymity.
“What exacerbates the problem is that some existing iron ore suppliers have been tied with local producers, thus making Jharkhand-based steel producers from iron ore needed.
For example, in Odisha, Odisha Mining Corporation (OMC) provides a supply that is guaranteed to Odisha-based buyers With a long-term linkage policy.
Similarly, the government’s steel authority from India Limited (Sail) also sells iron ore from her prisoners’ mine in Odisha and Chhattisgarh to local players.
However, there are no sales from the Jharkhand mine.
In fact, Sail has canceled the auction held at Jharkhand for local iron ore mine, “other gyrate-based company management is claimed.
While Mine Secretary K Srinivasan and officials of Jharkhand State Mining Development Corporation (JSMDC) did not respond to Ti’s call, a high-ranking official at the Directorate of the State Mining said: “The mining rental was suspended in March last year after the revision by the Center in the MMDR law.
At present, there are no steel plants in Jharkhand who are forced to close their production due to lack of iron ore.
However, we are currently in the process of updating leases.
It will take time.
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