Chhattisgarh-based sponge and steel industries are facing acute shortage of iron Ore, the Federation of Indian Chambers Of Commerce and Industries (FICCI) Chhattisgarh said urging the to implement pre-emption or first right of the iron ore for state based end Plants.
Chhattisgarh based plants are at a competitive disadvantage being situated in hinterland areas, with muted demand for finished steel and iron products compared to other states likePunjab, Uttar Pradesh,Maharashtra, Karnataka, Gujarat, and West Bengal.
FICCI has urged the state government to pro-actively implement pre-emption of iron ore for State based end-use plants who are solely dependent on MMDC for meeting their iron ore requirement. The Industry body has asked states to consider the issues of improving the production in state based iron ore mines so that they consistently achieve rated capacity and endeavor to first fulfill the iron requirement of state based plants before allowing merchant miners such as NMDC to engage in outside state exports.