Chhattisgarh Chief Minister Bhupesh Baghel has in a letter to the Union Steel Minister Dharmendra Pradhan demanded that the long term concessional rates for iron ore be fixed and called for an immediate rollback of iron ore price hike affected by National Mineral Development Corporation.
"In his letter written to Union Steel Minister Dharmendra Pradhan yesterday, the Chief Minister said that due to unprecedented hike in the price of iron ore by NMDC affected from January 20, 2020, local small industries as well as steel and sponge iron industries are facing huge difficulty in procuring iron ore from NMDC mines in Chhattisgarh which has further interrupted steel production," said a press release.
"Due to the long period of lockdown, all kinds of economic activities in the state have been badly affected; especially iron ore based small and sponge iron units in Chhattisgarh are on the verge of closure due to non-availability of iron ore as per requirement from NDMC mines in concessional rates, leading to unemployment and exodus of labourers," it added.
Referring to his earlier letter dated January 23, 2020 on the same subject, the Chief Minister said that he is yet to receive information regarding steps taken in response to it.
"Mr Baghel had stated that he was appraised by the Sponge Iron Association that the NMDC has hiked the basic price of iron ore lump and DRCLO by Rs 230 per tonne on the price effective before January 3, 2020. Thereafter, again on January 22, 2020, the price of iron ore - lump and DRCLO has been hiked by Rs 470 per tonne," it said.
"The basic price of iron ore - lump and DRCLO, has been hiked by Rs 700. This basic price coupled with royalty and other taxes, the price of iron ore has been hiked by Rs 875 per tonne, which has further led to hike in the price of steel by Rs 2,000 per tonne," it added.
The Chief Minister "urged the Union Steel Minister that hiked iron ore rates by NMDC be withdrawn immediately and a long term concessional rate fixed for iron ore based small and sponge iron units in the state".
( With inputs from ANI )