Bhubaneswar: Election fever every where in Odisha. There has strong chances that ruling party Biju Janata Dal (BJD) once again to form government in the state. Industries working in the state what expect from the new government?
Though Odisha is a agrarian state but in recent decade it virtually converted into a rapidly growing industrial state.It is known as mineral rich state of India. For this reason numbers of mineral and mining related company set up their base here. There are numbers of sector need some help from the new government. Let us discuss it one by one:
Mines Sector: Odisha is full of iron ore, bauxite and coal reserve. Iron ore play a major role in states exchequer. Big company like Tata, JSPL, Rourkela Steel Plant, VISA steel, NINL and lots of small and medium size company set up plant here. After ban on illegal mines in Odisha industrial houses find it difficult to get raw material. For this reason not a single steel plant he
re run with full installed capacity. As no relaxation given to mining company in terms of production or export their revenue drastically came down. Mining Industry in Odisha wants that new government should give timely essential clearance for mines development. Secondly want the export law to be relaxed to a level playing field. Need special administrative help from state government official.
Infrastructure facility is a great problem for the state. Mining companies often alleged about lack of railway racks for movement of product. Repeated truck strikes. Labour unrest in mines area. Lack of useful connectivity to major ports. And finally mines industry need a favorable tax structure in the state.
Steel sector: There are numbers of steel company in Odisha including big houses like Tata steel, NINL, JSPL, Bhusan, RSP, etc. Due to unavailability of raw material no plant run in full capacity. Industry body in regular interval demand government innervation in this regard. After listen to them Odisha government issue a circular to all iron ore mines to sell 50 percent of their production to those steel plant located in Odisha who do not have captive mines.Infrastructure is also a major problem for this sector.
What the steel industry mostly need from the new government is a favorable environment to execute big ticket project like Posco plant In Jagatsinghpur district. This year Posco plant not a election issue. Fater nine years of MOU with state government and assurance from central government Posco plant never see the green light. It steel wait to get PL approval for captive mines. Land acquisition process stucked due to local people objection. If big ticket investment find a way then Odisha able to attract lots of new companies around the world. In a major blow to the state last year Arcelor-Mittal announced not to put it's proposed plant in Odisha. If this situation persist in near future then definitely state's investment environment will be affected.
Aluminum sector: Aluminum sector play a major role to make Odisha prosperous state. Nalco, Vedant aluminum are two big company in this state. A a Navaratna state run company Nalco has to financial difficulties. But in recent years company struggle to got coal from MCL. Vedant Aluminum forced to lock out it's plant in Lanjigard due to non availability of bauxite. It approach Nalco for hep but denied by later. Company for some time take help of other states and import raw material at high cost. But that process never stayed for long time. Vedant need immediate solution for raw material problem. Nalco find it difficult to increase export earning as rupee weaken against US dollar. New goernment sholud look after these issues.
Coal Sector: Odisha is mostly affected by de-allocation problem. Mandakini, Utkal-B block allocation cancelled by coal ministry. Though accompanies got many captive block for development due to lengthy approval process not a single entity able to get even prospecting license approval, which is considered as fisrt stage foe mines development. Even State run OMC block de-allocated. New government should provide speed clearances to this sector.
Though Odisha is a agrarian state but in recent decade it virtually converted into a rapidly growing industrial state.It is known as mineral rich state of India. For this reason numbers of mineral and mining related company set up their base here. There are numbers of sector need some help from the new government. Let us discuss it one by one:
Mines Sector: Odisha is full of iron ore, bauxite and coal reserve. Iron ore play a major role in states exchequer. Big company like Tata, JSPL, Rourkela Steel Plant, VISA steel, NINL and lots of small and medium size company set up plant here. After ban on illegal mines in Odisha industrial houses find it difficult to get raw material. For this reason not a single steel plant he
Infrastructure facility is a great problem for the state. Mining companies often alleged about lack of railway racks for movement of product. Repeated truck strikes. Labour unrest in mines area. Lack of useful connectivity to major ports. And finally mines industry need a favorable tax structure in the state.
Steel sector: There are numbers of steel company in Odisha including big houses like Tata steel, NINL, JSPL, Bhusan, RSP, etc. Due to unavailability of raw material no plant run in full capacity. Industry body in regular interval demand government innervation in this regard. After listen to them Odisha government issue a circular to all iron ore mines to sell 50 percent of their production to those steel plant located in Odisha who do not have captive mines.Infrastructure is also a major problem for this sector.
What the steel industry mostly need from the new government is a favorable environment to execute big ticket project like Posco plant In Jagatsinghpur district. This year Posco plant not a election issue. Fater nine years of MOU with state government and assurance from central government Posco plant never see the green light. It steel wait to get PL approval for captive mines. Land acquisition process stucked due to local people objection. If big ticket investment find a way then Odisha able to attract lots of new companies around the world. In a major blow to the state last year Arcelor-Mittal announced not to put it's proposed plant in Odisha. If this situation persist in near future then definitely state's investment environment will be affected.
Aluminum sector: Aluminum sector play a major role to make Odisha prosperous state. Nalco, Vedant aluminum are two big company in this state. A a Navaratna state run company Nalco has to financial difficulties. But in recent years company struggle to got coal from MCL. Vedant Aluminum forced to lock out it's plant in Lanjigard due to non availability of bauxite. It approach Nalco for hep but denied by later. Company for some time take help of other states and import raw material at high cost. But that process never stayed for long time. Vedant need immediate solution for raw material problem. Nalco find it difficult to increase export earning as rupee weaken against US dollar. New goernment sholud look after these issues.
Coal Sector: Odisha is mostly affected by de-allocation problem. Mandakini, Utkal-B block allocation cancelled by coal ministry. Though accompanies got many captive block for development due to lengthy approval process not a single entity able to get even prospecting license approval, which is considered as fisrt stage foe mines development. Even State run OMC block de-allocated. New government should provide speed clearances to this sector.
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