KNIA warns of shutdown if OMC does not revise ore prices

Bhubaneswar, Nov 23 (UNI) The Kalinga Nagar Industries Association (KNIA) has requested the Orissa government and the state-owned Orissa Mining Corporation (OMC) to supply iron ore and chrome to the industrial units at revised rates in view of the economic crisis and global meltdown.

Talking to newspersons here, KNIA president P L Kandoi warned that if the OMC did not act immediately and revise the rates of iron ore and chrome ore, it would lead to huge lay off, labour unrest and closure of many units.

Mr Kandoi said as many as 50,000 workers, directly engaged in manufacturing sponge iron and more than 70,000 persons indirectly employed, would be affected.

Besides, the government would loss VAT and excise revenue to the tune of Rs 3,000 crore and another Rs 500 crore per annum from other sources.

The association leader said due to the global meltdown the domestic price of pig iron, sponge iron, steel and ferro chrome had dropped significantly, but the prices of iron ore and chrome had reduced marginally.

He said while the prices of pig iron dropped from Rs 32,000 to Rs 21,000, sponge iron from Rs 24,000 to Rs 13,000 per ton, the prices of iron ore reduced marginally by only Rs 540 per ton.

Similiarly, while the international and domestic prices of ferro chrome had come down from approximately Rs 90,000 to Rs 35,000 per ton, the chrome ore prices had gone down only by Rs 6,850 per ton.

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