Cabinet may take final call on iron ore exports ban
The issue of banning iron ore exports is far from being resolved. As the committee of secretaries (CoS) has failed to arrive at a consensus, the matter is expected to be decided by the Cabinet.
By Subhash Narayan, TNN |
NEW DELHI: The issue of banning iron ore exports is far from being resolved. As the committee of secretaries (CoS) has failed to arrive at a consensus, the matter is expected to be decided by the Cabinet.
As banning the export of high grade iron ore has generated divergent views within the government, the matter has been referred to the Cabinet, an official said.
CoS, however, agreed to review the iron ore export policy after three years. It also agreed to constitute a group to study demand and supply projections of steel and consequently of iron ore of various grades and types in India.
The committee was constituted by the Cabinet Secretariat to frame an export policy with restrictions on the export of high grade iron ore with 64% and more iron content. It was also to decide whether current levels of iron ore exports should be maintained with a fresh review of the situation after three years.
The contentious issue of iron ore exports has virtually resulted in a clash between the mining and steel lobbies with their respective ministries backing the industry.
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Even though the export committee headed by Planning Commission member Anwarul Hoda has given its recommendations on the National Mineral Policy, the government had to constitute CoS to resolve export-related issues.While iron ore exports have failed to reach an agreement, CoS has suggested a host of other measures to improve the productivity of mining and steel industries. It has suggested that putting mandatory requirements on all captive and new steel capacities to benefit sinter and pelletise iron ore so that unused ore fines could be utilised by the industry.
CoS has also suggested to put in place an incentive plan to boost low grade iron ore and regulate extraction of low grade ore. In ’05-06, the country produced 150m tonnes (mt) of iron ore with exports of 90 mt.
The National Steel Policy has set a target of over 110 mt of steel production by ’19-20. The steel ministry feels that this would require more than 180 mt of ore.
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