Two of the important sectors ? steel and mines ?that play important roles in the growth story of the infrastructure sector will have new ministers. In the first reshuffle of UPA II, Prime Minister Manmohan Singh made performance the prime parameter to induct new ministers into the two sectors. While Beni Prasad Verma has been made minister of state (independent charge) of steel, Congree loyalist from Gujarat Dinsha Patel joins the mines ministry in the similar rank.

The two have joined new ministries at a time when the country?s steel and mining operations are flooded with activity with massive expansion taking place to meet the growing demand.

The immediate challenge for the new steel minister is of achieving ambitious growth targets set by his predecessor and the veteran Congress leader Virbhadra Singh. Steel minister has set a target of producing 124 million tonne of steel by 2012 but its achievement looks improbable due to delay in several projects for reasons ranging from environment clearance to land acquisition. The leader from UP would also have to take forward Singh?s agenda for raw material security for domestic steel manufacturers.

Virbhadra Singh had made strong case for a complete ban of export of iron ore to ensure the long-term reserve of natural resources but failed to convince the government. The new minister will be required to take the issue forward to see that steel capacities in the country does not suffer for want of adequate raw materail linkages.

With infrastructure being on the top of government?s priority Verma would have to ensure additional steel-making capacity by fast-tracking the setting up of greenfield plants.