Union Steel Minster assures Chhattisgarh Chief Minster to look into problem of shortage of iron ore

New Delhi, December 1, 2011

Union Steel Minister Beni Prasad Verma today said he will personally look into the problem of inadequate iron ore supply to sponge iron manufacturing units in Chhattisgarh.

“Chhattisgarh Chief Minister works with a positive approach and has always cooperated with the institutions of the ministry.  Therefore, I will personally look into the problem of shortage of iron ore in the state,” Verma said.

Chhattisgarh Chief Minister Dr. Raman Singh met the minister at Udyog Bhawan here and apprised him of the problems faced by sponge iron manufacturing units in the state. Dr. Singh urged the Centre to provide more iron ore as the total 2.5 million tonne per annum (Mtpa) iron ore supply was inadequate for the state.

The Chief Minister said sponge iron manufacturing units in the state has the total requirement of 5 Mtpa of iron ore but they are getting just 2.5 Mtpa. He added sponge iron units in the state mostly, based in Raipur and Raigarh, have threatened to stop production because of the recurring shortage of iron ore.

Verma also directed the officials to call a meeting next week of the departments concerned to look into the matter.

Dr. Singh urged the minister to reconsider the Centre’s decision of signing a long-term iron ore export contract with Japan and South Korea, saying it would affect the interest of domestic industry and that of Chhattisgarh unit in particular.

Both the leaders also discussed Rowghat iron ore project in detail during the meeting. Steel Secretary P K Mishra, President SAIL C S Verma, Secretary to Chief Minister Aman Kumar Singh and OSD to Chief Minister Vikram Sisodia were also present at the meeting.

No./3920-1