India: Business leaders seek Odisha CM intervention as OMC dispatch halt hits industries

Iron ore dispatches from India's second largest merchant miner, OMC, continues to remain suspended. In the latest update received, numerous small and medium-scale industries in Odisha are likely to get impacted due to shortage of raw materials. This ongoing issue has prompted the All Odisha Steel Federation (AOSF) to write to the Chief Minister of Odisha, Mohan Charan Majhi, seeking urgent intervention on the matter.

The root of the issue lies in the disruption of iron ore supply from OMC's mines. Several industries, which rely heavily on these iron ore supplies for their operations, have Long-Term Agreements (LTA) with OMC. The ongoing crisis has significantly hampered the availability of iron ore, which may cause production halts thereby threatening the viability of many enterprises.

These companies represent a significant portion of the industrial capacity of the state, providing employment to thousands directly and indirectly. The potential closure of these units could lead to massive job losses, affecting not only the employees but also the livelihoods of lakhs of tribal people in the region.

The industries in question are pivotal to the local economy, offering employment opportunities and contributing to the economic well-being of the tribal population.

The industry leaders have urged for immediate measures to resume dispatches from mines to ensure a steady supply of iron ore, thus averting the impending industrial catastrophe.

Notably, OMC, a state-owned enterprise and the second-largest merchant iron ore miner in India with an annual production of 33 million tonnes (mnt) halted dispatches on 6 July 2024.