Captive mine plan for steel cos opposed
The Indian Steel Alliance (ISA) has opposed the Hooda Committee recommendation for preferential allocation for captive mining for steel companies within the state their factories are located.
By TNN |
NEW DELHI: The Indian Steel Alliance (ISA) has opposed the Hooda Committee recommendation for preferential allocation for captive mining for steel companies within the state their factories are located.
The committee, which was constituted by the Planning Commission to review the national mineral policy and to come up with recommendations for possible amendments to the Mines and Minerals Act, had in its report suggested such a measure for captive mining of iron ore.
The report said steel making capacities already in existence on July 1, ’06, which do not have captive mines, may also be given preferential allotment of adequate iron ore reserves within the state without the need to go through the process of auction as a one-time measure to provide a level playing field. This would affect four steel companies including Jindal South West, Essar Steel, Ispat and Rashtriya Ispat Nigam.
According to Moosa Raza, president of ISA, "We have opposed the concept of value-addition within the state. We are against the principle which would lead to fragmentation based on a region or state concept."
He added, "As far as the issue of steel capacity is concerned for the allocation of iron ore reserves, our view is that it should also take into account steel companies’ 'committed capacity expansion plan'."
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