Business Standard reported that amid allegations of monopolization of chrome ore trade leveled by the All Odisha Steel Federation against state controlled miner Odisha Mining Corporation, the Odisha government has informed the Competition Commission of India that there is no policy for fixation of sale price of the ore.
AOSF an organization representing the interests of steel and sponge iron makers had filed a case with the CCI in January 2012, alleging monopoly in chrome ore trade by OMC.
Mr PL Kandoi president of AOSF said that “CCI is presently investigating into our charge of monopolization of chrome ore trade by OMC. The commission had heard the case in April this year.”
The state steel & mines department has clarified to CCI that there is no policy of OMC for long term sale of either chrome ore or chrome concentrate to any buyer inside or outside the state.
Mr PK Panda additional secretary said in a letter to Mr SP Deo additional director general of CCI that “The entire sale of chrome ore or chrome concentrate is done in the domestic market and there is no export. Chrome ore is sold to end user industries of Odisha and outside the state in the ratio of 70:30. This ratio, is, however, not applicable for chrome ore concentrate. Sale of chrome ore and chrome ore concentrate is being conducted by OMC through e-tender with effect from July 1st 2012.”
Mr Panda said that the 70:30 ratio for sales to units located within and outside the state has been decided by the board of directors of OMC in 2008-09. The chrome ore sale ratio does not require the approval of the Government of India.
Justifying the 70:30 ratio, he said that “While most of the buyers outside Odisha are refractories and chemical units, the buyers within the state are mainly ferro chrome ore industries. The total chrome ore requirement of empanelled Odisha based buyers is 1.23 million tonne per annum that of outside buyers is 0.75 million tonne per annum.”
