According to Industry bodies such
as The Associated Chambers of Commerce and Industry of India (ASSOCHAM), “All
the integrated steel plants capable of undertaking viable, scientific and
efficient iron ore mining should be made available captive iron ore mines”.
“During the pre-liberalization
era, most of the steel plants were provided with captive iron ore mines which
is the only domestic resource input for competitiveness of steel business,” said D.S. Rawat, secretary general of ASSOCHAM in a communication to the
Ministry of Steel.
China grew its steel industry
from a level of about 45 million tonnes per annum (mtpa) to nearly 700 mtpa
during this period, thereby outstripping every other country in the world.
Currently about 65 mtpa of steel
is produced in India while there is a requirement of nearly 500 mtpa for
developing infrastructure.
Coking coal quality in India is
fairly poor and its quantity is insignificant compared to the rising needs of
domestic steel sector. The competitiveness of Chinese steel companies comes
from the availability of coal, coking and steam at cost plus reasonable gross
margin basis and effectively takes care of their national interest.
Thus, India too must restrain
exports of iron ore for domestic consumption, said ASSOCHAM.
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