Odisha To Set Up Separate Steel Directorate To Focus On Investment In Steel Sector

31 December, Bhubaneswar

Odisha government Thursday decided to set up a directorate for steel in the Steel and Mines department to focus on investments in the steel industries. The decision was taken at the state Cabinet meeting held under the chairmanship of Chief Minister Naveen Patnaik here.

Briefing newspersons after the Cabinet meeting, chief secretary Aditya Prasad Padhi said at present the additional secretary of the steel will act as the director of the steel. The director will appoint consultants and advisors to address the problems of the steel industries.

The directorate will start functioning from April next. He said the government decided to set up the directorate as there was no separate establishment under the steel and mines department to deal with the matters relating to steel industries.

The government also decided to amend the penalty provisions of the sales agreement in the long term ore linkage policy as recommended by the Odisha Mining Corporation (OMC). As per the provisions in the existing policy, the industries would have to pay a penalty of 5 per cent on the total value of ore if it failed to lift 90 per cent of the ore allotted to it.

As per the decision, the allotment quantity to be assured under long term linkage shall be determined by a committee constituted by the government from time to time and the OMC would execute sale agreements with the long term buyers and make modification from time to time as per need. The chief secretary said the decision would help improve doing business for the buyers of iron ore and chrome under long term linkage.