No shortage of iron ore; ensuring supply to steel ind: Govt
New Delhi, Dec 1 (PTI) There is no shortage of iron ore in the country and the government has taken steps to ensure that there is sufficient availability of the raw material for steel industry, Parliament was informed today.
“There is no overall shortage of iron ore in the country. Production of iron ore in the country is more than the requirement of domestic steel industry,” Minister of State for Steel and Mines Vishnu Deo Sai said in a written reply to the Lok Sabha.
He added however that the temporary regional shortages of iron ore have taken place in the states like Karnataka and Jharkhand due to legal and regulatory issues.
While iron ore production last fiscal was 152.43 million tonnes, its domestic consumption was at 110.50 MT, he said.
Sai further said that in order to ensure sufficient availability of iron ore in the domestic steel sector fiscal measures have been adopted by government. It has imposed export duty of 30 per cent ad valorem on iron ore with effect from December 30, 2011 and 5 per ad valorem on iron ore pellets with effect from January 27, this year.
Replying to a question on whether the government is proposing to bid for mining of iron ore in countries like Afghanistan, the minister said: “Decisions regarding bidding for iron ore mines….are taken by individual CPSEs based on their requirements and commercial prudence.”