Bhubaneswar: Odisha Mining Corporation (OMC) under direction from the State Government is actively reviewing the long-term iron ore linkages provided to certain corporate entities that have recently acquired captive mining leases through the auction process, as mandated by the Mines and Minerals (Development and Regulation) Act, 1957.
While replying to a question raised by Shri Kalikesh Narayan Singh Deo, MLA Balangir in Odisha Legislative Assembly, Minister Steel & Mines, Shri Bibhuti Bhusan Jena confirmed that a monitoring mechanism has been established to track the utilization of iron ore supplied under these long-term agreements against the backdrop of the corporations’ own captive production.
Shri Singh Deo asked whether the Government is aware that several corporate entities previously granted long-term iron ore linkages from OMC have also acquired captive mining leases through auctions. And if so, what steps have been taken by the Government to review whether such corporates are optimally utilizing the OMC linkages.
Minister said that under the State Government’s direction, OMC is undertaking a comprehensive review of the quantum of iron ore required under each linkage. This assessment is based on three key factors: the actual consumption of iron ore by the linked entity, the production from its newly acquired captive mines, and the remaining raw material requirement.
The primary objective of this action is to ensure the rationalization or reduction of the linkage quantity where appropriate. This policy step is being taken to guarantee the equitable distribution of OMC’s iron ore resources among genuine end-use industries, with a particular focus on those entities that do not possess captive mining leases. The government’s stance underscores a commitment to fairness in resource allocation across the industrial sector.