The Hindu Business Line : Export only low-grade iron ore: J.J. Irani

‘Posco is welcome. We need the competition. But let them make steel here. They can be permitted to make steel, but they should not be allowed to export ore.’

Our Bureau

Visakhapatnam, July 19

It is not desirable to export high-grade iron ore from the country and only low-grade ore should be reserved for the purpose, said Mr J.J. Irani, former Managing Director of Tisco and currently a director of Tata Sons.

Mr Irani made the comment while delivering a lecture on ‘The present position of the steel industry and its future in the country’ in the Visakhapatnam Steel Plant on Thursday.

“I have no doubt that the future of the steel industry lies in India, in view of our vast iron ore reserves, but we should be prudent with them. We should not export the high grades.

“In my view, the whole debate on the issue is unnecessary. It should be obvious,” he said.

However, he said that he was not against foreign companies setting up steel plants in the country and making use of the ore.

“Posco is welcome. We need the competition. But let them make steel here. They can be permitted to make steel, but they should not be allowed to export ore,” he said.

In that context, he referred to the numerous memoranda of understanding signed by the Orissa Government and wondered how many plants would come up.

Advantage India

Mr Irani opined that the existing steel plants in the country, including Visakhapatnam Steel Plant, should enjoy assured supply of iron ore for the next 20-25 years, taking into account their expansion plans.

Drawing a comparison with China, he said that country was far ahead of India in steel-making, infrastructure development and many other matters. “But we have a great advantage now. China, because of its population policy of one-or-none, is now saddled with aged and ageing population. We have the edge, as we are a young nation,” he remarked.

Mr Irani exhorted the steel companies, both in the public sector and the private sector, to spend more on research and development, as “we have become intellectually lazy, though we have the brain power”. The technologies relevant to Indian conditions should be developed, he said.

In response to a question, he said he was in favour of mergers and acquisitions in the steel industry. “Size does matter. I am all for consolidation. We cannot have a fragmented industry.”

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