When Narendra Singh Tomar took charge as Steel and Mines Minister in May 2014, his task was a big one. Reviving the mining industry was crucial to inject growth in the economy, while the steel sector needed to be made attractive for foreign investors. In an interview to BusinessLine, Tomar spoke on the measures taken by the government to revive the mining sector as well as boost steel production. Edited excerpts:

Mineral exploration has seen little activity from the government. What is your strategy to address this?

In the Mines and Minerals Development and Regulation (MMDR) Amendment Act, we have primarily focussed on exploration. Till now, people didn’t need proof of mineralisation from the government.

The miner used to do exploration and apply for a mining lease if he found anything. We have 8 lakh sq km of land in the country that has possibility of mineral reserves.

The Geological Survey of India (GSI) has mapped only 15 per cent of this area. Today, mining is taking place on only one per cent of that area. We have created a National Mineral Exploration Trust where 2 per cent of the royalty will go. With this, we will boost exploration. We have also empowered more agencies to undertake exploration and are about to prepare a policy for this. If GSI needs to be restructured, we are ready to that as well.

When will mineral auctions start?

We have already notified the rules. We have had meetings with the States and they have started identifying mines. In some areas, mineralisation has to be proved, so there GSI and Mineral Exploration Corporation Ltd are ready to help with exploration. In this fiscal year, the mineral auctions will begin.

Are there any mines or minerals that have already been identified for auction?

In the last meeting, the States informed us that some limestone, iron ore and bauxite mines have been identified. Within a week or two, the Secretary, Mines, will sit with the States to finalise the mines.

Modernisation and expansion of Steel Authority of India has seen a lot of delay. Have you been able to address this?

SAIL’s expansion and modernisation work saw some delay. But, in the last 9-10 months, we have monitored it and set stiff targets to bring work back on track.

Work at Rourkela, Burnpur, Durgapur and Bokaro has been completed. Bhilai’s expansion is expected to be completed by September. After that, SAIL’s production capacity will be 23 million tonne (mt) a year, against 13 mt currently. Our target now is to increase its capacity to 50 mt tonne by 2025. For this, we have planned ₹1.5-lakh crore of investment.

Can we expect revival of the private sector and international investment in the steel sector?

We are preparing a favourable environment for private sector investments.

For a long time there was expectation of an investment from Lakshmi Mittal’s ArcelorMittal. Now they have signed a memorandum of understanding with SAIL and agreed to start work in India. Within two-three months their team is expected to come to India to scout for locations. They have planned an investment of about ₹7,000 crore and plan to manufacture value-added steel, which is an important step towards our ‘Make in India’ goal.

The government’s target of 300 mt/year steel production by 2025 seems ambitious. What is the roadmap?

It is a difficult target, but we are helping small industries as well as larger manufacturers to achieve it.

Private sector manufacturers are expanding and will help us achieve that goal. I plan to sit with the smaller manufacturers by July to listen to their problems and formulate a plan to help them. Today, 88 mt steel is being produced a year and almost 50 per cent comes from smaller manufacturers. They have an important role to play.

Procedural delays have played a role in stalling the mining sector. What has been done to correct the situation?

Most of the clearances can now be obtained at the State-level. We have even empowered States to develop a mining plan approval procedure as per the regulations of the Centre. So, even mining plans can be approved at the State level.

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