Though the fine print and official confirmation of the mining sector reforms the Union Cabinet approved on Wednesday are yet to come, industry players are elated at the steps taken. There are, however, concerns over implementation at the state level and the environmental impact of mining. “Directionally, it is a good set of reforms. But since implementation is with state governments, the key lies in how each state executes it at its end. Even today, for a final go or no go, in terms of approvals, it takes about three-four years, and this scares away investors,” said Ritabrata Ghosh, assistant vice president (corporate ratings and industry research) at ICRA.
The Union Cabinet is learnt to have approved a reform package for the mineral mining sector which would entail amendments to three existing laws, pricing formula for minerals, exploration of mines and several taxes and duties levied on mining. Officials said this is expected to boost production and private investment in the sector. The Centre has removed the distinction between captive (self-use) and merchant (commercial sale) mines. The Centre would amend the Mines and Minerals (Development and Regulation) Act, 1957 (MMDRA) to enforce the reforms. Senior officials said the amended MMDRA would be placed in Parliament in the upcoming session. Under the proposed reforms, captive mines would be allowed to sell 50 per cent of the minerals excavated in a year. The Centre has also proposed to give 50 per cent rebate in the quoted revenue share, for the quantity of mineral produced and dispatched earlier than scheduled date of production
The tussle between iron ore miners and steel companies over exports to China has taken a political turn with both sides questioning each other’s patriotism. In a fresh missive to Prime Minister’s Office, the Federation of Indian Mineral Industries (FIMI) said it is very unbecoming on the part of Indian Steel Association (ISA) of doubting .
Steel cos, iron ore miners spar over exports to China
January 11, 2021
Question patriotism of each other
The tussle between iron ore miners and steel companies over exports to China has taken a political turn with both sides questioning each other’s patriotism.
In a fresh missive to Prime Minister’s Office, the Federation of Indian Mineral Industries (FIMI) said it is very unbecoming on the part of Indian Steel Association (ISA) of doubting the patriotism of the iron ore industry for exporting maximum quantity to China when the steel industry itself is trading with China.
Some of the primary steel producers, who are recommending a ban on iron ore exports, exported 7.52 million tonnes (mt) of iron ore last October and November besides 10.63 mt of pellets illegally, last fiscal. Only State-owned Kudremukh Iron Ore Company is legally allowed to export pellets. The fact that the primary steel producing companies are exporting iron ore indicates that there is no shortage of iron
FIMI urges Centre to withdraw protective support provided to domestic steel players
Union Transport and MSME Minister Nitin Gadkari last month said that he had sought Prime Minister Narendra Modi s attention towards 55 percent hike in steel prices by players during the past six months, making projects unviable. PTI
Steel
Miners body FIMI has urged the government to revisit its protectionist apprach towards indigenous steel manufacturers and said that domestic players are taking undue advantage by fixing steel prices almost at par with the international level despite all the protection and incentives.
Union Transport and MSME Minister Nitin Gadkari last month said that he had sought Prime Minister Narendra Modi s attention towards 55 percent hike in steel prices by players during the past six months, making projects unviable.