Manufacturers seek time for adoption of practices and infrastructure

  • 20/07/2008

  • New Indian Express (Bhubaneswar)

BHUBANESWAR: With increasing clamp down on sponge iron units over pollution issues, the manufacturers in Orissa have pleaded for a little more time for adoption of proper practices and infrastructure. The sponge iron industry in the State is only eight years old and is making gradual improvement in putting in place mandated systems, practice and equipment for control of pollution, they said. Crackdowns and closures are not answers as the sector has generated over 30,000 direct and 60,000 indirect jobs. Tax contribution has been about 20 percent of the sales tax by way of Central Excise, VAT, entry tax and service tax, etc. Iron and steel industry is the core sector industry which deserves encouragement and support from the Government and other agencies, they added. Chairman-elect of Orissa Sponge Iron Manufacturers Association Pradipta Mohanty said sponge iron sector accounted for at least 30 percent of the total steel production and churned out more than 4.5 mt of the total eight mt output in the State in 2007-08. Outlining other problems, outgoing president GS Agarwal said land availability was a major bottleneck. Acquisition by the Government was time-taking while direct purchases were hindered by the cumbersome processes, he said while pressing for speedy improvement in road and rail infrastructure through Sundargarh, Keonjhar and Jajpur districts. Industries Minister Biswabhusan Harichandan and Minister of State for Steel and Mines Pradeep Kumar Amat were present.