Kalinga Nagar Industries Association (KNIA) has set off alarm bells saying the industries are inching towards closure on account of halt in iron ore supply from Daitari Iron Ore Mines.
“For the last two years, the units have been heavily suffering due to unavailability of iron ore from Daitari mines. All the steel units have gone sick and are resorting to corporate debt restructuring (CDR) and are on the verge of closure,” P. L. Kandoi, association president, said in a statement.
He said the Kalinga Nagar Industrial Complex was created and established mainly due to the proximity of Daitari Iron Ore mines and Iron and steel making units of KNIC are totally dependent on supply of iron ore from Daitari Mines.
“On the other hand, OMC has not been able to restore supply as the forest clearances of Baliparbat, the stockyard of Daitari mines from where material is dispatched, is awaited. Supply from Baliparbat had stopped since August 2011, under the direction of the State mining department,” Mr. Kandoi said. “While the forest clearance of this proposal would be in the public interest, it is evident that in spite of the intervention of Chief Minister Naveen Patnaik, the Ministry of Environment and Forest is insensitive to the State’s proposal and request,” he said.
The association came down on State government saying the State had failed in its commitment to ensure assured supply of raw material.
