With the Mines Ministry going full throttle to enact the Mines and Minerals Scientific (Development and Regulation) Act 1957, the steel industry has asked the government to examine certain issues to protect its interests.

In response to the Mines Ministry’s Draft Mines and Minerals (Scientific Development & Regulation) Act, the industry in a joint representation to the government has suggested that mining leases for at least 100 square km of iron ore bearing areas be allocated instead of 25 sq km as suggested by it. This, it argued, was important as the proposed limit would be a hindrance to major investment envisaged in the iron and steel sector and reminded that the government had envisaged an investment to the tune of Rs 8,50,00 crore within the next 7-10 years in the sector.

On the crucial issue of defining criteria for the grant of mineral concessions, the industry pointed out that while assessing the various bids put forward by different claimants, the ministry should accord due priority to those who pledge to add value to iron ore and discourage non-serious players. Further, the industry contended that if bidding was institutionalised then royalty should be abolished, while the development of peripheral infrastructure could be met through tax, levies, etc, according to the representation. The industry suggested that any lease extended on iron ore mines be extended for at least 30 years.