Business Line reported that delay in allotment of coal and iron ore mines, increasing imports of iron ore by India and the failure of domestic steel makers to reach production targets so far this year. Affected by different regulatory issues, the domestic steel industry has missed the production target of 124 million tonnes for this fiscal by 40% so far. Several global companies are re thinking their Indian strategies
According to the Federation of Indian Mineral Industries, with regard to iron ore, India, which had been exporting this raw material, had to import 9 million tonnes so far this fiscal and could bring in 15 million tonnes for the full year. Against this background, industry leaders were unanimous that exploratory operations should be stepped up taking into account India’s steel demands by 2020.
Mr NK Nanda director of National Mineral Development Corporation said that India had 25 billion tonnes of iron ore reserves, but most of it was still untapped.
Mr Nanda said that the company was willing to undertake exploratory works in different States free of cost, but most of the State Governments were yet to respond to the call and allot blocks. Only Jharkhand has given us some blocks for exploration. None of the other States have come forward.
Mr RK Goyal MD of Kalyani Steels said that the government develops a model for allocation of resources and minerals for steel production, with priority to existing plants that do not have captive mines. Mr Goyal said that “Iron ore for steel production is not adequately available and whatever is there is sold at speculative prices due to the current issue of illegal mining.”
