- Ministry of Steel consolidates industry suggestions
- Domestic pellet capacity utilisation at just 60-65%
The Ministry of Steel has held consultations with key industry players — including SAIL, JSW, Jindal Steel, Tata Steel, AM/NS, Rungta, KIOCL, and PMAI (Pellet Manufacturers Association of India) – to address long-standing challenges in driving iron ore beneficiation reforms.
Key issues identified include the economic unviability of beneficiation under current business models, unresolved tailings disposal mechanisms, and low domestic pellet capacity utilisation (60-65%) despite ongoing pellet imports.
Among the industry’s major suggestions were:
- Declaring an Average Sale Price (ASP) for low-grade ore and BHQ (<45% Fe) with incentives to keep it competitive.
- Imposing export duty on low-grade ore (<58% Fe).
- Offering tax incentives for imported beneficiation equipment.
- Simplifying land clearances for tailings disposal and excluding tailings/residue from mine capacity limits.
- Introducing a 5% royalty incentive on beneficiated ore and rationalising Odisha’s royalty regime.
- Discouraging pellet imports through duties and promoting higher domestic pellet use in steelmaking.
The Ministry of Steel has taken note of all suggestions and will now finalise recommendations for the Ministry of Mines, which is the nodal authority for the sector.
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