SteelMin wants MMDR Act to ensure mining leases on merit

Arguing that the current practice of granting mining leases on a first-come-first-serve basis is complicated,cumbersome and impedes value-addition,the Steel Ministry today made out a case for devising a new formula in the new version of the MMDR Act being drafted by the Mines Ministry to ensure captive mines to the “meritorious end users.”

Delving on the need to expressly ensure captive raw material security for the steel sector,Steel Secretary Pramod Kumar Rastogi held the practice of granting mining leases through the first-come-first-serve system as extremely complicated,resulting in the government being unable to allot iron ore mines to the steel producers. Under this system,those who have applied early would be given early consideration. “This formula has to be done away with. As on today,the procedure of allotment of mines is so complicated and cumbersome that the government is virtually unable to allot mines to the meritorious end users,” he told The Indian Express. He hoped that in the new version of the Mines and Minerals (Development and Regulation) Act 1957,the Mines Ministry would certainly take the concerns of the steel sector on board.

Rastogi said the present process is quite cumbersome as it entails many levels of clearances at the central and state levels. “Besides,there is generally no preference for the value-adders. Every case no matter who applies,serious or otherwise,should be looked into. Existing steel plants would have to be accorded due priority as they are the end users and have invested heavily in ensuring value-addition,” he contended. The ministry’s concern also arises from the fact that Korean steel giant Posco’s proposal seeking captive mines for its mega 12 million steel project in Orissa’s coastal Jagatsinghpur district has been tossing back and forth between the Centre and the state.