Bhubaneswar: Realising that the raw material linkage was a major hurdle for growth of the steel sector in the state, a collaboration between Odisha Mining Corporation (OMC) and National Mineral Development Corporation (NMDC) was encouraged to help overcome the problem.
“There is a lot of future prospect, if OMC and NMDC work together,” Union Steel Secretary G Mohan Kumar said here yesterday.

Kumar, who yesterday met representatives of steel industries at Kalinga Nagar Industrial complex in Jajpur district, said that the collaboration between the two PSUs could help in resolving the problems.

A number of industry representatives yesterday had drawn Kumar’s attention to the problems of raw material to run steel units.

Kumar said more infrastructure facilities in industrial estates would promote investment in steel and allied sectors.

It was decided at a high level meeting attended by Kumar that state-owned Industrial Infrastructure Development Corporation would work out a regional plan for development of infrastructure and linkage to industrial estates.

With Odisha already creating a separate place for itself on the steel map of the country, Kumar said “The state has attracted large investment in the steel sector.

However, there is still large scope for investment in the steel and allied sectors here.”

Supporting Kumar’s views, Odisha Chief Secretary J K Mohapatra said “I see a win-win situation for these two corporations if they collaborate to maximise production.” Mohapatra, emphasizing on upgradation of the Rourkela Steel Plant, said that state government would provide support to upgrade the capacity of the steel plant at Rourkela.

Odisha government has proposed that RSP be upgraded to 10 million tonne capacity during the 12th  Plan period.

The meeting also discussed the proposal of Nilachal Ispat Nigam Limited’s merger with SAIL.

“It has also been decide that a meeting of Government of India, Government of Odisha, MMTC, SAIL and NINL will be held under chairmanship of Steel Secretary to resolve issues relating to shares of MMTC and NNIL,” an official said.

The issues relating to updating of mining leases was also discussed at the meeting.

It was decided that Odisha secretary, steel and mines, would call for bilateral meetings of the perspective lessees and resolve the issues through mutual discussions to avoid further litigation.

“Solving issues relating to mining will boost investment in the steel and mining sectors and will open up the second phase of investment in Odisha,” Kumar said.

The issues relating to forest clearances, land acquisition, removal of encroachment, rehabilitation, renewal of mining leases of SAIL, NMDC, OMDC and others were also discussed at the meeting.