RCCI dwells upon impact of recession on industries

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Rourkela: The current recession has cast its gloom all over the world, affecting the economy of our country as well. The impact is that many industries in and around Rourkela facing shutdown, said Minister of State for Commerce and Transport, Subrat Tarai here today.

However, the minister assured that his foremost duty will be to look after the commerce and transport in the Steel City which is key for industrial growth.

He was speaking on a ceremony organized by the Rourkela Chamber of Commerce and Industry (RCCI) last evening. Lauding the role of RCCI towards trade, commerce and industry in and around Rourkela, he assured that the problems of RCCI will be sorted gradually.

“I will take up this matter with Chief Minister Naveen Patnaik to sort out the problems of RCCI,” said Tarai. He also listed out the need of the Steel City­­­- air connectivity, second bridge on River Brahmani, Transport Nagar in Rourkela. He also underscored the need for construction of 13 ports in the state. Three ports at Dhamra, Astarang and Gopalpur have now started which will help commerce and transport sector generate more revenue, the minister added.

President of RCCI Mahesh J Vajir deliberated on industrial scene in Odisha, which is gloomy. The mineral-based industries such as sponge iron plants, sponge iron-based steel plants, aluminium plants and ferro alloys plants are suffering huge losses due to shortage and high price of iron ore.

Private mines owners and OMC are raising prices taking advantage of fresh demands from the newly established industries, he added and stated that though Odisha Government has assured the industrial houses to allot mines and provide raw materials linkages, it is yet to fulfill its commitment due to various regulatory constraints. This has resulted in the wheels of progress running aground.

RCCI president said while steel plants having captive mines, or private mine owners setting up sponge iron and steel plants are able to obtain iron ore at Rs. 400 to Rs. 500 per metric tonne at pit head, other sponge iron and steel plants have to pay about 10 times more i.e. Rs. 5000 to Rs. 6000 per tonne for each tonne of iron ore. The Central and State governments need to intervene and provide level-playing field for all plants to survive, he reasoned out.

Vajir requested Tarai to take steps for construction of second bridge on River Brahmani at Panposh on NH-23, and air service.

Among others Pawan Agarwal, Vice-President RCCI; Sunil Kayal, Vice-President RCCI; Rajesh Kumar Agarwal, General Secretary, RCCI; members of RCCI and party members were present.

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