The Hindu Business Line : ISA asks Govt to auction iron ore mines thru competitive bidding

In a communication to the Planning Commission, the Indian Steel Alliance (ISA) has suggested the Planning Commission make the process of allocation of iron ore mines to steel manufacturers similar to the competitive bidding model followed for allotment of captive coal blocks.

The move follows recommendation made by the Hoda Committee on mining sector reforms set up by the Planning Commission that has opined against giving captive iron ore mines to steel manufacturers and have suggested non-renewal of existing iron ore mining licences of companies with captive mines such as Steel Authority of India Ltd and Tata Steel.

ISA, representing the bulk of primary steel manufacturers, has urged the commission to follow the auction route for allotment of iron ore mines to actual users.

In a letter to the Commission, the ISA has said that out of the 13 billion tonnes of hematite ore resources, nearly 50 per cent has already been allocated to companies such as SAIL, Tata Steel, NMDC, OMC and other private mining companies, the ISA, in a letter to the Commission said the unallocated reserves of 6-7 billion tonnes "may be given through auction to actual users, established steel mills and those who commit to establish steel mills within a prescribed time frame."

State exemption

It also added that State Governments may exempt established steel mills from the auction process on a case to case basis and allocate mines on the basis of their long term requirements.

"This policy may be framed on lines similar to the allocation of coal blocks," the letter said.

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