By Bizodisha Bureau, Bhubaneswar, July 29, 2015 : The Odisha government on Wednesday invoked Odisha Essential Services (Maintenance) Act or ESMA for six months, terming the mineral transporters’ agitation ‘illegal’, special secretary of the home department Lalit Das said here.

The steel and mines department had recommended the home department to invoke ESMA after the 16 truckers truck and tipper owners’ associations operating in Koida and Joda mining circles of Sundargarh and Keonjhar districts have launched an indefinite strike since July 20 over a dispute over freight charges between vehicle operators and transporters of various sponge iron industries and mines.

Around 30,000 trucks and tippers in Sundargarh and Keonjhar have gone off the roads in protest against the state government’s proposed move to fix a ceiling on transport cost and award of transportation contracts through the e-tendering process.

The mining companies have been complaining that the mineral transporters dictated stiff freight charges.

Source said due to halt in mineral transportation as a result of the stir, the State government is losing crores of rupees daily and the mines production and royalty are taking a hit. The strike has hit iron ore despatches by about two lakh ton per day, leading to a revenue loss of Rs 12 crore a day to the state exchequer by way of royalty, sources added.

An eight-member delegation comprising representatives of four associations from both the districts and the Odisha Truck Owners’ Federation on Monday discussed the issue with Transport minister Ramesh Majhi.

Source said the delegation suggested the minister to end the present crisis by allowing the old freight rate till finalization of government notification.

Production in three major pellet plants – Jindal Steel and Power Limited (JSPL) plant at Barbil, Brahmani River Pellets Limited (BRPL) and Aryan Pellets – has come to a standstill due to the non-availability of raw material supply as a result of the strike, sources added.