STEEL MINISTRY MULLS DEVELOPING JHARIA COAL FIELDS ON PUBLIC- PRIVATE PARTNERSHIP MODEL: SHRI PASWAN

The Minister for Steel, Chemicals and Fertilisers Shri Ram Vilas Paswan today said that the Ministry of Steel is considering a proposal for developing the Jharia coal mines on public-private partnership basis to ensure better availability of coking coal. The Jharia mines, he said, has an estimated reserve of 500 million tonnes of coking coal reserve which is getting destroyed through the underground fire. The Minister was talking to newsmen here today after the National Steel Consumers council meeting. He said, the project has become all the more significant after the coking coal prices shot up over 300 per cent in the recent past. Secretary, Ministry of Steel Shri P.K.Rastogi who was present on the occasion said, about 4 to 5 lakh people have to be rehabilitated for whom housing and employment avenues have to be worked out. Shri Paswan said, the expenditure could be 8 to 10 thousand crore rupees. He said, for coking coal the producers are dependent on imports. The ministry is assisting them to acquire to coking coal assets inside and outside the country.

Shri Paswan said, some steel consumers have complained that entry tax imposed by some states like Uttar Pradesh that came into effect recently are turning out to be multiple entry tax and adding to the burden of users. When asked he said, the issue will be taken up with the state government.

Earlier addressing the meeting Shri Paswan said, steel prices have stabilized and are also falling in certain cases. He was keen to know whether the consumers were getting the benefits of price fall. The Minister said, demand for steel has been growing by 10-11 per cent annually, while production this year has increased by 5 per cent or so. Capacity utilization in the existing plants has increased has reached a peak. Therefore, new additional capacities (Brownfield and Greenfield) are needed to restore the balance between supply and demand and reduce pressure on prices. He also felt that by 2012, the projected demand of 109 million tonnes can be met from increase in production from 124 million tonnes of brown field expansion. However, he felt that the demand of 300 Million tonnes by 2020 may not be met if the new Green field capacity does not come up. The Minister also stated that all efforts are to be made to add around 19 million tonnes of steel capacity in the state of Jharkhand.

He said, to provide raw material security to the producers an export duty of 15 per cent has been imposed on iron ore. The Ministry of steel has recommended an additional 5 per cent duty on iron ore. The Minister said, the government will ensure the availability of steel in the far flung areas as reasonable rates and with that objective in view the Steel PSUs like SAIL and RINL have widened their dealer network. He said, the steel companies were entitled to reasonable profits while keeping prices at reasonable levels.