The government of eastern Indian state of Odisha has approved a new policy under which manufacturing facilities constructed in the state will be assured long term mineral supplies through, Odisha Mineral Corporation (OMC), the government’s mining arm, a government official said on Wednesday, June 28.
He said that the policy called “Long Term Linkage Policy of Minerals” will offer long term supply contracts of various minerals, iron ore, manganese, chrome ore, bauxite, -- to respective downstream value addition manufacturing plants, approved for construction in Odisha state.
An allotment committee appointed by the state government will determine the allocation criteria, volume of supplies, tenure of supply contracts and other terms and conditions, the official said.
He said that in fixing the floor price of the supply contracts parity will be maintained with existing pricing mechanisms.
It is pointed out that number of greenfield iron ore steel projects proposed in Odisha will benefit from the long term linkage policy and will not have to depend on sourcing their raw materials from auction conducted by private mines.
