Odisha's 57-MT iron ore output cap in 2014-15

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SME Times News Bureau | 22 Oct, 2014
Despite mineral-based industries crying for ore-linkage to run their plants, the Odisha government Tuesday fixed a cap of 57 million tonnes on iron ore production during 2014-15.

While the cap will be 13 million tonnes in Koira sector, it will be 44 million tonnes in Joda sector. Both these are the two most prolific iron ore mining sectors in Keonjhar district.

Director of mines Deepak Mohanty said: "The state-level task force meeting on mining, which met today (Tuesday), has decided to impose cap on the production of iron ore in the two circles of the state. The cap has been fixed as 57 MT in the two circles."

The capping on iron ore production was same as in the previous year 2013-14. There are presently 36 iron ore mines, including seven captive mines, under working condition in the state.

Mohanty said the government would allow 1,100 truck loads per day to Paradip Port in Odisha to avoid traffic congestion during the despatch of the iron ore.

Mohanty said the non-captive mines, however, will be allowed to despatch their balance stocks to sell through the port this year.

The government had imposed a restriction on despatching the stocks of the previous year till April 2014.

"Since the iron ore stock is coming under the limits of capping, the non-captive mines will be allowed to despatch their stocks through port during this year," said Mohanty.

The government had imposed a cap on iron ore production up to 52 million tonnes annually in Joda and Koira sector in 2012-13.

The state produced about 72 million tonnes and 66 million tonnes of iron ore in fiscal 2010-2011 and 2011-2012, respectively.

Similarly, the iron ore exports from the state was 16 million tonnes and 10 million tonnes in 2010-2011 and 2011-2012, respectively.

Significantly, the Shah Commission in its report tabled in parliament had recommended the production be capped between 50 and 55 million tonnes per annum (MTPA), with an increase of 7.5 percent per annum or equivalent to the growth of steel and sponge iron industry's requirement.