By Bizodisha Bureau, Bhubaneswar, July 6, 2015 : Ferro chrome producers under the banner of the Indian Chambers of Commerce (ICC) on Monday urged the Odisha government to extend chrome ore mining leases where the mineral is used for other than captive purposes as per the amended Mines and Mineral (Development and Regulation) Act.

The sought extension of the mining leases up to March 31, 2020 to mitigate the current shortage of chrome ore due to drop in production leading to below par production by ferro chrome plants in the state.

The state government is losing Rs.735 crore per annum royalty due to closure of some chrome mines, said sources.

Chairman of ICC’s Odisha chapter, Vishal Agrawal and others on Monday met state Steel and Mines Minister Prafulla Mallick and chief secretary G.C. Pati to impress upon the government the need for extension of the chrome ore bearing mining leases in the state.

“The Odisha Mining Corporation (OMC) needs to increase production from existing operating and non-operating chrome ore mines and also increase production of chrome concentrates,” said a memorandum submitted to the government.

Besides, the memorandum demanded the state government to ensure long-term agreements for meeting the ore demand from the OMC’s south Kaliapani mines in mineral rich Keonjhar district and other private lessees to Odisha-based ferro chrome plants at viable prices.

The memorandum also said the transport cost from Sukinda chrome ore mining belt to the plants was abnormally high and urged the government to reduce the cost by breaking a strong nexus between influential locals and transport associations.

According to sources, Tata Steel, Mishrilal Mines and B.C. Mohanty have been major suppliers of chrome ore and concentrate to Odisha-based ferrochrome plants.

Last month, the industry lobby also wrote to Odisha Chief Minister Naveen Patnaik for redressal of their grievances in this regard.