The recent clamp-down on miners by the Odisha government, the largest producer of iron ore in the country, is likely to affect India’s sponge iron production by around 15 per cent in the current financial year, according to the Sponge Iron Manufacturers Association (Sima).
“Since Odisha is the largest producer of iron ore and sponge iron, the recent measures taken by the state government will surely impact on (the country’s) sponge iron output. In 2011-12, the output was around 20 million tonnes (mt). We expect this to drop by 15 per cent in 2012-13,” said Deependra Kashiva, executive director of Sima.