India plans shifting control of iron ore, coal to steel minister...

India plans shifting control of iron ore, coal to steel minister - Report

Steel News - Published on Tue, 23 Jan 2018


Business Standard, citing sources close to the matter, reported that Indian government is considering a plan to hand over control of iron ore and coking coal mining to the steel ministry to boost supplies of the key steelmaking materials, as the country is poised to become the world’s second-biggest producer, according to a person with knowledge of the plan. The source said “The proposal to shift the regulatory authority from the current mines and coal ministries is under discussion and needs approval from the prime minister’s office and the ministries.”

The integration would allow the steel ministry to make better trade policies, speed up approval of mining licenses and make it easier for foreign steelmakers to set up operations in India, the person said. India’s steel and mining industries have been at loggerheads over iron ore exports.

While miners have sought lower export taxes to become more competitive globally, steelmakers have argued for conserving the material for domestic use and focus on exports of value added products rolled out of their mills. The steel ministry has been trying to formulate a policy on iron ore pricing for more than a year as it seeks to protect the industry from volatility. The plan to shift control of the sectors would enable the ministry to finalize its plan sooner, the person said. Spokespeople from the prime minister’s office and the coal and steel ministries didn’t respond to calls. Mines secretary Arun Kumar wasn’t available for comment. India’s steel output is expected to rise to 108 million metric tonnes this year, topping Japan’s 107 million.