The National Steel Policy draft envisages further strengthening of the provisions of allocation of captive iron mines to steel producers in a transparent manner through a process of open bidding for all the well prospected mines.
By 2025-26, the policy draft, expects the country’s steel making capacity to rise to 300 million tonne (mn t) to ensure a projected production level of 275 million tonne by then.
The draft policy observes that lack of raw material security has been one of the major causes for tardy progress of steel capacity expansion.
The government may further consider putting some of the iron ore mines in a general category open for bidding by all.
According to the draft, India’s iron ore requirement may rise to 392 mn t by 2025-26, from around 200 mn t at present. The Steel Ministry has sought comments from stakeholders and the public by February 20.
The policy calls for opening up all the mining leases held by the steel producers on captive basis, which are yet to be operational and those where no investments have so far been made, for bidding among other steel producers.
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