The Hindu Business Line : Steel prices likely to rule firm, says ISA

The Alliance is a body of five steel companies — SAIL, Essar, Ispat, Jindal and RINL. (Tata Steel quit the Alliance recently, saying it would prefer to patronise the Institute of Steel Development and Growth, Kolkata, which does similar work as the Alliance).

To make the Indian steel industry competitive, the Alliance has given its inputs for the new steel policy that is under the consideration of the Cabinet.

As part of its demands, the Indian Steel Alliance has called for an explicit policy that would make it easier for steel companies to acquire iron-ore and coal mines.

Mr Raza told presspersons today that it was proving to be very difficult for steel companies to have iron ore mines of their own. He pointed out that companies such as Jindal and Ispat had been awaiting licence for a long time.

The Government, he said, should come out with a policy stating clearly which ore-rich lands would never be given out for mining, on environmental or other grounds. Then, steel companies would not waste time in doing ground work for applying for a licence for those mines.

However, once a land is not in such a `negative list', companies should be given licences/mining concessions easily, he said. He also wanted preference to be given to steel producers to merchant traders in giving mining licences. "Let the Government demand compensatory afforestation," Mr Raza suggested.

Mr Raza said that the Alliance had also asked the Government to prevail upon China to sell coke to India. He noted that as a producer of the much sought after high-grade iron ore, India was in a position to bargain, for the benefit of the domestic industry.

The Alliance has also recommended that the Government introduce steel-mesh reinforcement as a part of the specifications for road projects, which will increase the demand for steel. It has also called for avoiding frequent changes in customs duty on steel. "Duties have been brought down three times in the last eight months," Mr Raza noted.