With almost all the iron ore leases expiring on March 31, 2020, steel sector industries are worried about acute shortage of raw materials for next two-three years leading to a serious crisis.
As the process of mining auction is slow, it is unlikely that the process will be completed before March 31, 2020, officials apprehend.
And even if the process of auction will be completed, getting statutory clearances will take a long time, even for years together.
While the Government of India is targeting for 300 million tonnes (MT) of steel to be produced by 2025, there will be serious disruption in supply of iron ore for the steel sector as more than 250 iron ore mines lease will expire on March 31, 2020.
Steel producers are very much worried over the emerging critical scenario as with expiring of the mining leases all on a sudden, there will be stoppage of production of iron ore from these mines.
Odisha, being one of the top most leaders in iron ore production, similar situation will arise in 2020-21 as majority of iron ore mines will face stoppage due to expiring of mining lease on March 31.
Though the State Government is trying hard to go for auction of the iron ire mines, but it will take at least three long years to get other statutory licences like forest clearance, environment clearance and a host of other clearances.
Sources in the Union Ministry of Steel admit that the country is likely to face shortage of about 50 MT of iron ore in 2020-21 and it will adversely affect the steel sector.
So, now, the steelmakers are requesting the Government to help them out and provide raw material security.
In the meantime, almost all major steel makers have approached the State Government to look into the issues of raw material availability. Sources said that the State Government is planning to ramp up production in the mines of Odisha Mining Corporation (OMC) as the State PSU will be able to provide much needed raw material provisions in an impartial way.
And some of the private mining companies' leases are not expiring by March 2020, so that these mining lease holders can boost up their production to help out the steel makers.
In the meantime, the Ministry of Mines has allowed the Steel Authority of India Limited (SAIL) to sell 70 MT of iron ore, which are lying in the mines.
It is expected that the OMC and the SAIL will come to rescue of the steelmakers.
Source: Pioneer
(To contact the reporter on this story: cody.wang@steelhome.cn or 86-555-2238837) |
