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Odisha without raw material linkages have demanded holding of separate e
Business Standard reported that steel units and sponge iron makers operating in Odisha without raw material linkages have demanded holding of separate e - auctions for local end use industries and bidders having units outside the state.
Mr PL Kandoi president of All Odisha Steel Federation, a body representing the interests of local steel units and sponge iron manufacturers said that "There should be separate e - auctions for Odisha based industries and units located outside the state. While units outside the state will only pay commission to the state government for the ore bought through auction, local units are contributing in many ways like payment of taxes and employment generation.”
AOSF said that the state government to keep base rates reasonable for e - auction of minerals. 50%t of the quantum of ore to be sold through e - auction should be made available to the local players at base rate while the remaining 50% can be sold at prevailing market rates.
At a stakeholders' meeting conducted by the state steel & mines department, AOSF gave a string of suggestions for implementing e - auction of iron ore, chrome ore and manganese.
The steel federation has demanded that state owned mining company Odisha Mining Corporation should sell entire available quantity of iron ore to local units at such reserve price on long term linkage basis, as has been done by OMC for bauxite with aluminium units.
AOSF in its memorandum submitted to the state government said that "There should be monthly e - auctions on pre fixed dates. Each consuming unit should be tied up with each mine of nearest location. Monthly quantity of each unit should be fixed and no unit should be allowed to bid for more than 50% quantity of his monthly quota. Moreover, no bidder should be allowed to bid for 100% of any single lot and it should be restricted to 25% to 33% for each bidder.”
AOSF added that there should be a committee consisting of representatives from government, mine owners and consuming industries to monitor e - auction process, no trader or exporter should be allowed to participate in the auction.
Mr Rajesh Verma, secretary (steel & mines) said that “We have asked the different stakeholders to submit their views on e - auction within a week. MSTC which will offer the e - auction platform has explained the methodologies to the stakeholders.”