ROURKELA: A steep hike in loading charge by Kurmittar iron ore mine of Odisha Mining Corporation (OMC) at Koida Mining Circle has added to the woes of private metal industries of Sundargarh district which are already struggling due to high input costs.
The hike in loading fees from Rs 35 to Rs 159 per tonne, termed ‘tipper loading and service consultancy charges’, is applicable from October 1. Former chairman of Odisha Sponge Iron Manufacturers’ Association (OSIMA) Yogesh Dalmia said while due to domestic and global factors, coal prices have gone up by almost four-times to around Rs 10,000 per tonne, the price of imported coal too has doubled to around Rs 16,000. The brunt of the price hike is being borne by small industries which have access to limited resources.
Dalmia said due to the faulty policy of OMC, iron ore costs Rs 7,500-Rs 8,000 per tonne in Sundargarh and rest of Odisha while better quality iron ore is available for around Rs 6,000 in neighbouring Chhattisgarh. The hike in loading fees will hit the beleaguered local industries hard. “While Mahanadi Coalfields Limited (MCL) charges loading fee of Rs 10 per tonne, several private iron ore mines in Koida Mining Circle do not charge a penny for the same,” he said.
OSIMA chairman Manoj Agarwal said at a time when metal industries are hit hard with high input costs, the arbitrary hike in loading charge from Rs 35 to Rs 159 is both illogical and unjustified. An industrialist requesting anonymity claimed the so-called ‘tipper loading & service consultancy charges’ as a monopolistic practice of the Khandadhar Loading Agency Pvt Ltd (KLAPL) in nexus with labour unions and transport contractors.
As per OMC’s contract with buying industries, the labour cost for loading is included, but practically industries are forced to pay for the same. “OMC authorities ask the industries to use their own tippers, but the unions and transporters at the Kurmittar mine would not allow vehicles from outside. Due to such monopoly the transport coast at Kurmittar mines is high compared to other mines which have no unions, he said.
Adani Enterprise Ltd is working as the Mine Developer & Operator (MDO) for Kurmitar iron ore mine of OMC Ltd. KLAPL provides support and auxiliary transport at the mine which has issued letters to the transporters concerned asking to charge Rs 159 per tonne as loading fee.