Government policy to ensure iron ore is obtained cheap

This is a significant move to help the domestic steel industry.

The Dollar Business Bureau

In order to ensure that iron ore is available at cheap rates, Government of India is considering coming out with a policy, the details of which is expected within a month.

The move is significant as it comes at a time when the country’s steel industry is reeling under the pressure of high costs of raw material.

“What policy steps we need to take to ensure that iron ore is plentifully and cheaply available is something which we are working on and there could be various formulations to that,” an official privy to the development reported told PTI.

The government is examining the policy initiatives and hopefully within a month or so it would come with recommendations, the official said, while adding that Niti Aayog will examine and provide us with the suggestions.

As a general principle, raw material prices should be cheaper because that provides the Steel Ministry a competitive advantage as it is involved in several schemes, the official said.

National Mineral Development Corporation (NMDC) is the single-largest producer of iron ore in India.

Earlier, the Minister of Steel, Chaudhary Birendra Singh, had said that a group of experts that would be created by the government for studying iron ore sale by NMDC will also assess the mining major’s ore auction and pricing.

NMDC has increased the prices of high-grade iron ore (lumps) by Rs.100 a tonne to Rs.2,325 per tonne for the month February.

The state-owned company also increased the prices of iron ore fines, the inferior grade ore, by Rs.100 to Rs.2,085 a tonne for the present month.

The Dollar Business Bureau - Feb 28, 2017 12:00 IST