Sponge iron manufacturers seek govt intervention

Kolkata, Nov 9: Sponge iron units in West Bengal have called for government intervention in reduction of iron ore prices, the main raw material for their product.

Private mine owners are increasing prices of iron ore unilaterally and government should step in reduce the prices to normal level, West Bengal Sponge Iron Association president Gouri Shankar Jain said here last night.

Mr Jain said the government should create an iron ore regulatory authority in lines with the Electricity Regulatory Authority or the TRAI to control iron ore prices.

The Association also asked the government to impose levy on non-captive iron ore mines to ensure supply of the mineral.

Grant of iron ore mining lease in more numbers and stoppage of iron ore exports could also save the sponge iron units, Mr Jain said.

The Association said the sponge iron units around 44 in number have become commercially unviable because of the higher cost of the raw material.

While the cost of production for one ton of sized iron ore is remaining at Rs 580, its selling price stood at Rs 3600.

The Association also urged the government to classify iron ore as a major mineral instead of minor mineral to empower government to have more control over iron ore movement.

UNI