Paswan demands phasing out of iron ore exports

The steel ministry today demanded gradual phasing out of iron ore exports, saying unlimited ore exports could jeopardise the stability of domestic steel utilities.

"We are seeking gradual phasing out of exports of ore in view of rising production capacity of the domestic steel industry. The current ore reserve is slated to last for only 60-70 years. If the present level of ore exports continues, we will have to borrow the mineral in times to come," Steel Minister Ram Vilas Paswan told reporters here.

He said his ministry did not want to jeopardise the mining industry, but said the interests of the steel industry would also have to be kept in mind.

He pointed out that the current estimated ore reserve in the country was about 22 billion tonnes of which 8 billion tonnes were proven reserves and if exports continued, it could hit the steel industry hard.

Paswan said in 2005-06, the country produced 150 million tonnes of iron ore of which 90 MT was exported and the remaining consumed by the steel plants. "Such whopping exports is undesirable," he argued.

Praising the PSEs under the steel ministry, he said their profit before tax had shown a significant improvement of around 17 per cent in the first half of the current financial year, which amounted to Rs 6,600 crore from the combined profit before tax of Rs 5,649 crore in the corresponding period last year.

The minister said the Steel Authority of India Ltd (SAIL) had been told that its performance would be weighed vis-à-vis its foreign counterparts, which implied that it would have to better its performance.