The Hindu Business Line : Orissa Minerals' EoI on mines evokes sharp reaction

NEW DELHI: Steel companies are up in arms against the Orissa Minerals Development Corporation (OMDC) for inviting EoIs to form strategic partnership to develop Koyda mines with conditions that will exclude all the existing players.

"You may cancel the present invitation (EoI) and come out with a fresh one," leading steel maker Bhushan Steel Limited (BSL) told OMDC management in a letter while pointing out that even Steel Minister Mr Ram Vilas Paswan, on being informed about the exp ression of interest (EoI), had directed officials concerned to take up the matter with the Corporation.

The bone of contention is that under the EoI it has been stipulated that only those firms, which have signed MoUs with the Orissa government for setting up at least 6 million tonnes of steel plant would be eligible to participate in the tender.

Under the terms of EoI, three companies including world's biggest steel producer ArcelorMittal, Korean steel maker Posco and Jindal Steel and Power Limited would be able to participate in the bidding process as they have singed the MoU with the Orissa go vernment to set up steel plants of six million tonnes or more.

The terms of the EoI, according to Mr Anil Ahuja, Vice-President Corporate Affairs and Raw Materials, BSL would exclude those firms, which already have steel plants in Orissa.

"We feel that OMDC should consider those companies already having plants in Orissa instead of those who have pledged to set up a plant," he said.

When contacted, Mr K L Mehrotra, CMD, Manganese Ore India Limited (MOIL) who is holding the additional charge of OMDC, refused to comment on the matter. - PTI

Prev: Edible oil import rises 40% in Nov-Feb
Next: BHEL bags order for Nabinagar power project

Business Line | NUS Index |