Over 5L engaged in mining, steel sectors face livelihood threat
As many as five lakh people, directly and indirectly engaged in mining and steel industries sectors in Odisha, hangs in balance as majorities of the industries now starve for raw material.
The acute shortage of iron ore, the key raw material, now threatens to leave many of the industries unviable. The country’s leading industry bodies like Confederation of Indian Industries (CII) and Odisha Sponge Iron Manufacturer Association (OSIMA), have requested the state government for immediate intervention in the matter to protect the steel manufacturers protect the employees and
Odisha has 83 steel and sponge iron industries which along with mining royalties contribute nearly `30,000 crore to the state exchequer.
Knowing the economic value of the mining and steel industries, the Union government had announced these two sectors as emergency commercial activity during the ongoing Covid pandemic.
“Currently, the installed plants in the state need about 81.40 million tonnes per annum (MTPA) of high-grade iron ore after so as to jobs of co-workers. deducting supply from captive mines, which has become impossible to source because of rampant inter-state export of iron ore outside the state, making it very challenging for Odisha based enduse plants to secure ore availability at reasonable prices,” the OSIMA in its letter to the Odisha steel and mines principal secretary said.
The body said the mindless interstate export of iron ore has led to a substantial surge in the price of the mineral within a year, hitting the viability of several industries.
Once the steel industries become unviable, the fate of nearly five lakh people directly or indirectly employed in them will face the threat of job loss.