By acquiring expensive blocks, Arcelor Mittal spoiled the game of iron ore; the result is a robbery on the pocket of the consumer
*****By buying expensive iron ore blocks, the common consumer will have to grapple with the price of iron in the future. The tricks played by Arcelor Mittal in this entire game and the shortcomings of the government will have to fall on the pocket of the common man. The government is ready to strangle the common consumers to allow these industrialists to flourish.. *****
Arcelor Mittal won the block 1 A on 151% premium
Arcelor Mittal at 157 % Block 1B of Bailadila range also gone to
Block 1C won by Rungta sons at 152%
Raipur // Chhattisgarh's valuable iron ore mines Bailadila Deposit 01A Iron Ore Block 01B and 01C have been auctioned. Chhattisgarh government had invited bids for three iron ore mines of Bailadila and one iron ore mine of Hahaladdi. Hahaladdi in Kanker district and Bailadila in Dantewada district. A good amount of iron ore is available in all the four blocks, whose Fe 64 % means it is the best iron ore of India. These blocks of Bailadila were earlier allotted to Tata Steel but the government cancelled it when Tata Steel did not prepare for mining of these blocks on time. PIL of this block of Bailadila has already been filed and on the basis of that, the government invited bids by dividing this entire block into three parts. 13 bidders have qualified to bid in it. All those bidders took part in it by bidding according to their own convenience. The government had started the bidding process at 100% which Arcelor Mittal won the block at 151% premium and acquired by placing the highest bid. Similarly, Block 1B of Bailadila range also went to Arcelor Mittal at 157% and Block 1C was won by Rungta sons at 152% and they occupied the block by placing the highest bid. Renowned companies of the country which already have expertise in steel had participated. NMDC has control over 7 blocks in Bailadila where it is mining and supplying iron ore without any hindrance by making yearly contact with the iron industry traders of the whole country. Currently, the iron ore rate of NMDC is 3300 per ton today. The blocks which have been acquired by Arcelor Mittal and Rungta sons will have to pay 6800 per ton for this iron ore. When these bids were made public, the big companies of the whole country were surprised to see this type of bidding. Various types of reactions and flaws in the bidding are coming to the fore. Most of the participating companies have said that in view of the START BID which they have already given to the government at a higher rate than 100%, the rest of the bidders have increased the price of iron ore as per their calculations and have acquired iron ore blocks at a maximum bid of more than 150%. This incident has led to discussions about the price of iron in the iron industry of India. Traders and industrialists associated with the iron industry say that the way these companies have increased the price of iron ore, the main raw material of iron, by more than 150%, its effect will be felt directly in the market. Industrialists will not lose anything, this entire burden will fall on the common consumers who have to buy iron related goods for making and building houses. This will be the first time in India that these companies have acquired these iron ore blocks at such high rates to acquire the blocks by any means for their own benefit. This is going to disrupt the iron market in the iron industry of the entire India either by acquiring the blocks or by any other means. Will the bidders mine the iron ore at this price and take it to their factories or will they cause a huge loss of revenue to the Government of India and the Chhattisgarh government by making various excuses in the process of surrendering these blocks?
Arcelor Mittal first took over the pipeline process company of SR India Limited in Chhattisgarh. Then it kept trying to take over the Nagarnar Steel Plant. Due to public opposition and practical difficulties in transporting iron ore through pipeline Bailadila,to VISHAKHAPATNAM it withdrew its hand and made a huge investment in iron in Odisha during the time of Naveen Patnaik. Now, to expand its activities in Chhattisgarh, it needs blocks in every direction and has acquired these expensive blocks. By doing this, it has put all the iron industrialists in worry. Mittal has an old track record that it does not do business, it plays gambling in the steel business. It creates similar headaches for the entire iron industry. The way it has acquired these iron ore blocks at such a high price means There are chances that the price of iron may go above ₹1,00,000 per ton in future.
The Government of India and Government of Chhattisgarh should not give such free hand to such industrialists in their state and country so that they can snatch away our beautiful iron industry market and establish their dominance. They did the same kind of work abroad too. When the local industrialists there came to know about their cunningness, they jointly started giving them problems. Therefore, Mittal has been trying his best for the last 8-9 years to close down all his foreign trade and establish his dominance in India. This is their only method to establish their foothold in India; increase the price in business so much that the back of small industries is broken.