Sponge iron unit workers on strike, demand ore supply

Thousands of workers in the sponge iron production units took out a protest march from the Kanaka Durgamma temple to the Deputy Commissioner’s office where they submitted a memorandum.

The protestors then reached the Mothi Circle, before concluding the rally at the Municipal College premises. They launched the serial hunger strike thereafter.

The workers said mining and ore transport had come to a halt following Supreme Court directions. They demanded that a uniform price be fixed for the ore being supplied through the National Minerals Development Corporation.

 Association President, Srinivas Rao, said: “In the 70 sponge iron production units across the State, 12,600 tonnes of sponge iron are produced daily. The annual production is five million metric tonnes (MT) against the demand of 11 MT.”

Rao said the units generate a revenue of Rs 3,000 crore annually for the government, while providing direct employment to 20,000 people and indirect job opportunities to two lakh people.

With the fall in availability of ore, the production units have suspended operation, he said. NMDC was providing ore at Rs 4,000 per tonne. He said the price should be reduced and ore must be provided to all units on priority basis.

NMDC was applying international rates even for local consumers. Hence, the sponge iron producers were finding it difficult to sell their produce in a competitive market.

Due to export of ore, the prices of iron and steel had gone up, Rao said, adding steel could be sold at Rs 30 per kg, if the government supplies the ore at lesser rate.

He said the government was giving more priority for large-scale steel industries. The bigger industries were getting preferential treatment even in release of loans, exemptions, land, power and water facilities, Rao said.

But, the sponge iron production units were not getting these facilities, he said.

“We are only seeking ore at low rates,” said U K Rana of the Association. Workers in the sponge iron units in Sandur, Hospet and Bellary taluks as also the members of the Lorry Owners’ Association took part in the rally.