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Our Bureau

Bangalore , Feb. 16

INDIA'S export potential for iron ore will not be affected, even while the steel production capacity is increasing. Only a third of the 601 leased mines are in production and the consumption is much less than the overall production of ore.

According to the Federation of Indian Mineral Industries (FIMI), only about 247 mines are in actual production, accounting for an aggregate of over 160 million tonnes (mt).

The President of FIMI, Mr H. A. Wahab, told reporters here on Wednesday that while the Union Government has liberalised the mining policy, the implementation by the State Governments is stuck in red tape, resulting in lower exploitation of ore than the granted permission. The FIMI has sought the "deemed approval" of licences, if not cleared within three months, and also the simplification of procedures.

He said that though 18 MNCS had invested in the sector, none had reached production stage due to delay in clearances and uneconomical deposits. However, smaller companies could show interest, if the procedures are streamlined, Mr Wahab said.

The mining industry, both public and private, is pumping in over Rs 200 crore in various infrastructure projects to overcome export delivery schedules, which have been impacted for want of rakes and inadequate capacities at ports.

Lamenting on the poor infrastructure affecting ore exports, Mr Basant Poddar of FIMI said the industry had taken the initiative to contribute about Rs 20 crore to the Hassan-Mangalore rail link, which is expected to be ready in two months. Close to Rs 200 crore had been contributed by the private sector for the development of ports at Mangalore, Karwar and Bilikere in Karnataka, besides Chennai.

FIMI will be addressing issues of infrastructure development, licensing and investments at the two-day Indian Mining Summit, which gets underway in Bangalore from Thursday.

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