In a move meant to boost the steel sector’s growth, the steel ministry has agreed to giving weightage to value addition of minerals during the allocation of mines for mega mining projects. The proposal forms part of a new mining Bill approved last month by a 10-member Group of Ministers (GoM) headed by Finance Minister Pranab Mukherjee.
Commenting on the latest regulatory changes which will promote the growth of the steel sector on Friday, steel secretary P K Misra said the changes, proposed in the Mines and Minerals Development and Regulation (MMDR) Act, would create a level-playing field for all the participants. “Earlier, the steel makers and merchant miners were on the same footing,” he recalled.
As per the proposal, bidding for Ultra Mega Mining Projects (UMMPs) will see preference being given to companies that have infrastructure for value addition, including benefication (for increasing quality) and pelletisation plants. Preference will be given also to those corporates with firm ore supply agreements in place. The MMDR Bill, 2010 is likely to be introduced in the winter session of Parliament this year.
Misra also said the government would come out with structured environment clearance norms within four months. The GoM headed by Mukherjee is already deliberating on the issue.
“The steel minister is also a part of the ministerial group,” he said. “A decision on streamlining environment clearance norms should come within four months.”
Delays in the grant of environment and forest clearances are posing a major hurdle for infrastructure projects, including those in power, coal and steel sectors. The secretary also informed the government was waiting for appropriate market conditions to launch the mega follow-on issue of steel major SAIL. “It has to be at the time when the stock market is in good condition. At present, the stock market is fluctuating. We still intend to go through with the issue this financial year,” he said on the sidelines of a conference.
The government currently holds over 85 per cent stake in SAIL and plans to divest five per cent stake in the steel maker as part of its disinvestment programme. The company will also issue five per cent fresh equity under the share sale plan.
