Media reports indicate that the union mines ministry may send an advisory to the Odisha government warning against the proposed measures of the state government.
Especially, the mines ministry may advise the state government against proceeding with a proposed move asking holders of mining lease (pending renewal) to supply half of the output to sponge-iron and steelmakers located within the state. The ministry ministry reportedly feels that the step is against the Constitution of India.
The Odisha government has taken the move to safeguard the huge investments it attracted on the promise of raw material security, reports indicate.
Odisha took several measures relating to bauxite, iron ore, chrome and manganese mining that go into making steel and its alloys and aluminum between September and October last year.
The centre advised the Odisha government that a number of recent resolutions it has taken, including reserving all future mining of important minerals for a state-owned firm, is not in concurrence with the law.
The state owns one third of the country's iron ore, more than two thirds of total bauxite reserves and much of the chrome resources.