SteelMin wants captive iron ore mines allotted faster

Lamenting that undue delays in allotting captive iron ore mines to steel companies were dissuading them from going full throttle on capacity expansion,the Steel Ministry has asked the Mines Ministry to adequately equip the empowered committee to accord prior approval for mineral concessions on behalf of the Central government.

In a letter,the Steel Ministry told the Mines Ministry that it is highly imperative that iron ore linkage in the form of captive mines be made available to the steel plants while reminding that “a number of projects in the steel sector are getting delayed due to non-allotment of mines to them either due to dilatory tendencies of the state governments or due to other reasons.” It argued that the Coordination-cum-Empowered Committee,set up by the mines ministry to act as a single window clearance system to monitor and minimise delays in the grant of various approvals for mineral concessions,“has not been adequately empowered to accord prior approval on behalf of the Centre for doing so.”

“Huge investments have been envisaged in the country for capacity expansion in the steel sector through brownfield and greenfield routes. However,for successful implementation of steel projects,raw material security is a vital component,” the steel ministry argued. The government last year approved the National Mineral Policy and recommendations of the Hoda Committee. The committee had recommended setting up a Coordination-cum-Empowered Committee to act a single window clearance system,which it argued was not empowered.

Interestingly,the Mines Ministry is in the process of drafting a new law to fructify the objectives of the new national mineral policy as the current MMDR Act seems to be inadequate in reflecting the changing priorities of the mineral sector. It is likely to adhere to the broad tenets of the Hoda Committee report while doing so. The Committee while reviewing the Mineral Policy 1993 had suggested changes in procedures for granting mineral concessions and encouraging value-addition of minerals.