Due to uncertainty, the Indian steel industry has resorted to import iron ore. Although the SC has allowed category A mines to start production, miners are facing several issues like renewal of licence and compliance

A three day Mining Exploration Convention and trade show, organised by the Federation of Indian Mineral Industries (FIMI), was inaugurated by the Union Minister for Mines, Steel and Labour, Narendra Singh Tomar, in Bangalore. More than 300 delegates are expected to participate in the Convention, where, there is no doubt that the steel industry's spokesmen are going to explain the state of affairs in the mining sector.

Indian production of iron ore has now come down to 140 million tonnes (mt), as against 220 mt before the ban on illegal mining. Supreme Court, while permitting the mining operations to start, classified the categories of mines as A, B and C, and permitted those under "A" to commence their mining operations. In the meantime, in order to continue and/or revive production, import of iron ore in 2013-14 amounted to 360,000 tonnes, and, so far, during the current fiscal, it has reached 2.37 million tonnes.

Iron ore production in Karnataka, for instance, is now only 17 million tonnes against the rising demand of over 30 million tonnes annually. Karnataka has 160 iron ore mines of which, currently, only 27 are operational. After the Supreme Court permitted those mines, categorised as "A" to commence operations, most of them have been attempting to renew leases (many of which expired during the interim period), acquire fresh licences, and, of course, comply with the usual formalities relating to environmental clearances.

Although the Environment Minister, Prakash Javadekar, had assured one and all that his Ministry would not be a speed breaker, it now appears that mine owners wishing to start their operations are confronted with potholes! Because of the recent amendments to the Mines & Mineral (Development and Regulation) Act 1957, the process of lease renewals have become "particularly difficult" according to Basant Poddar, Managing Director of Mineral Enterprises. The steel industry has been left with little choice and due to uncertainty in obtaining the indigenous ore, to tide over the production needs, they have resorted to import.

Details of the pathetic conditions of the steel industry, arising out of the non-supply and inadequate supply of iron ore are expected to be highlighted in the Convention. Union Minister Tomar, it is hoped, would carry the details and ensure necessary steps are taken with the Environment Ministry and the State Government authorities, so that Karnataka iron ore mines can start brimming with activity. It will also help to bring down employment to the mines, who have been suffering for long.

(AK Ramdas has worked with the Engineering Export Promotion Council of the ministry of commerce. He was also associated with various committees of the Council. His international career took him to places like Beirut, Kuwait and Dubai at a time when these were small trading outposts; and later to the US.)