The steel ministry has sought an amendment in the Mines and Minerals (Development & Regulation) Act, 1957 to bring iron ore, manganese ore and chrome ore under its purview. Currently, the powers are exercised by the mines ministry.
In a letter to Cabinet secretary KM Chandrasekhar, steel secretary Atul Chaturvedi has made out a case for the same arguing that the move would be in the interests of the steel industry which requires these minerals for its growth.
?I would request you to make necessary amendments in the government of India (allocation of business) rules, 1961 to make provision for exercise of the powers to the central government by ministry of steel under the provisions of MMDR Act, in respect of iron ore, manganese ore and chrome ore.? Chaturvedi has written to the Cabinet secretary.
The rationale is simple. Since the concerned minerals are used by the steel industry, as the administrative ministry, the steel ministry is responsible for facilitating its growth. The ministry has better knowledge and understanding of the future expansion plans of the domestic steel industry and is in the best position to assess its requirement and take strategic decisions.
As per the projections, crude steel capacity of the country is likely to reach 124 million tonne by 2011-12 and 295 MT by 2019-20. However, such a huge investment can fructify only if the long-term raw material security is guaranteed.
As per the current norms of the government, legislation as well as regulation of mines and development of minerals within the territory of India is allocated to the mines ministry, while development and facilitation of iron and steel production facilities and development of iron ore mines in the public sector and other ore mines (manganese ore, chrome ore, limestone and other minerals used in the iron and steel industry but excluding mining lease or related matters) is within the purview of the steel ministry.
The demand of the steel ministry assumes significance since state governments need prior approval from the central government for allocation of mineral concessions in respect of iron ore, manganese ore and chrome ore. Currently the mines ministry exercises these powers on behalf of the Central government while the steel ministry has no say.
?Government has constituted an inter-ministerial group (IMG) under the chairmanship of steel secretary to monitor and coordinate the issues concerning major steel investments in the country related to infrastructure, raw material supply, environment clearance and other resource constraints.
In the meetings of IMG, steel industry has from time to time raised the issue of non-allotment of captive mines or iron ore and other minerals, which are used by the steel industry,? Chaturvedi has written in his letter.
He has also highlighted that the ministry of steel has not been assigned any role in the process of allocation of mineral concessions for any mineral including iron ore, manganese ore and chrome ore, which are used primarily by the iron and steel industry and therefore the steel ministry us unable to address the concerns raised by the steel industry.
