The Hindu Business Line : Panel to look into iron ore mine allotment to steel cos

The Hoda panel had suggested that existing steel companies should be allotted mines without the need for going through the auction procedure as a one-time measure in the State.

New Delhi , Aug 28

The high-level inter-Ministerial committee set up by the Prime Minister's Office (PMO) to look into the issue of banning ion ore exports may also to look into the issue of allotment of captive iron ore mines to steel manufacturers.

At the first meeting of the committee held late last week, the Ministry of Steel has suggested that since there was diversity of opinion on the issue of allotment of captive mines to steel-making companies, the high-level committee should decide on the issue.

The suggestion has been made by the Ministry in the light of reservations expressed by existing investors in this sector on the controversial recommendation made by the Anwarul Hoda panel report on mining policy.

Sources, however, told Business Line, "Though the Steel Ministry suggested that the committee look into the captive mining issue, no decision has been taken so far."

They added: "It was the first meeting and there were general discussions. The second meeting would be held shortly, possibly in a week or two, depending on the availability of all concerned."

The Hoda panel had suggested that existing steel companies should be allotted mines without the need for going through the auction procedure as a one-time measure in the State.

"This is creating problems because of the peculiar phrase `in the State' in the Hoda committee report. For instance, Rashtriya Ispat Nigam Ltd (RINL) in Andhra Pradesh does not have captive mines. Nor does Andhra Pradesh have any iron ore reserves. The situation is similar for Essar in Gujarat and Ispat in Maharashtra. Therefore, there is a need to work out the course of action and there should also be clarity in the policy for new brownfield and greenfield capacity additions," the sources said.

The PMO had constituted the inter-Ministerial group following a letter to the Prime Minister, Dr Manmohan Singh, by Mr Naveen Jindal, Vice-Chairman and Managing Director of Jindal Steel & Power and member of the Lok Sabha, seeking a ban on iron ore exports.

The committee has representation from the Ministry of Steel, Department of Industrial Policy & Promotion, the Department of Economic Affairs and the Ministry of Commerce, with the Secretary (Mining) as its convenor.