Steel Minister asks Indian Steel and Mining Companies to look for Overseas Opportunities
The Union Minister of Steel, Shri Virbhadra Singh has asked Indian Steel and Mining Companies to look for overseas opportunities seriously. He said “it is the time for Indian steel and mining companies, whether they are in the public or private sector, will have to look for overseas opportunities seriously”. Addressing a Conference on “Challenges for Indian Steel Industry in Infrastructure and Resources” here today, he said that however, one would also have to take cognizance of the changing national policies in respect of investment in overseas mineral assets. He said, the recent proposal of the Australian Government to levy a 40 per cent resource tax is a case in point. Therefore, it makes strong sense to also remain focused on exploiting all the available internal resources and make best use of them with adoption of appropriate technology in iron and steel making, he said.
Shri Virbhadra Singh said that as far as iron ore is concerned, the Government has taken policy measures to discourage avoidable exports and consequently raise domestic availability by increasing export duty on lump ores to 15 per cent having a 5 per cent duty on fines. Although it will have some marginal impact on the export, the Government will have to look at the question of exports differently by bringing in definitive deterrence. This may be in the form of either prohibitive duty or quantitative restrictions. But, such measures can be brought in only in a phased manner with a clear long term plan.
The Minister said, the other major challenge for the Indian steel and mining industries is the inadequate development of supportive infrastructure. The problem looks more serious in the areas with greater mining potential. He said, the Government has launched infrastructure development plans in unprecedented scale in areas such as power, road, ports, railways, communication and human resource development. However, whether it is a sole Government project or one in the PPP model, progress in implementation is being hit by difficulties in land acquisition, extremist violence and skill shortage. He said, “I am sure, the conditions will change in the course of time to allow for completion of the projects in hand”.
Shri Virbhadra Singh informed that while the Government is doing its bit, a large responsibility lies with the industry and the industry associations. It is the synergy between what the Government does and how the private sector or the industry responds to it that will determine the success of all our efforts, the Minister added.
Delivering the keynote address the Secretary, Ministry of Steel, Shri Atul Chaturvedi, pointed out that the Joint Plant Committee (JPC) of the Steel Ministry has undertake a massive exercise of mapping out the infrastructure requirements of the steel companies in terms of augmentation of new railway line and development of highways. He urged FICCI to commission a study for taking the JPC report forward with specific projects that need to be undertaken so that these could be taken up with the ministries concerned and the appropriate authorities.
As regards forest and environment clearances for steel projects, Shri Chaturvedi said that the Ministry of Environment & Forests has been very cooperative in addressing the issues. He urged companies come up with specific issues so that these could be put on the fast track for clearance. While land acquisition for steel projects continues to pose a major challenge, the Steel Secretary asked industry players to consider using the large land mass that is currently available with the closed units. “I have asked the Ministry of Heavy Industry to map out such land masses and put the information on their website for the benefit of the prospective investor. I hope FICCI will coordinate with the Ministry of Heavy Industry to take the process forward,’’ he said.
The Conference was jointly organized by the Federation of Indian Chambers of Commerce & Industry and Ministry of Mines.
The Union Minister of Steel, Shri Virbhadra Singh has asked Indian Steel and Mining Companies to look for overseas opportunities seriously. He said “it is the time for Indian steel and mining companies, whether they are in the public or private sector, will have to look for overseas opportunities seriously”. Addressing a Conference on “Challenges for Indian Steel Industry in Infrastructure and Resources” here today, he said that however, one would also have to take cognizance of the changing national policies in respect of investment in overseas mineral assets. He said, the recent proposal of the Australian Government to levy a 40 per cent resource tax is a case in point. Therefore, it makes strong sense to also remain focused on exploiting all the available internal resources and make best use of them with adoption of appropriate technology in iron and steel making, he said.
Shri Virbhadra Singh said that as far as iron ore is concerned, the Government has taken policy measures to discourage avoidable exports and consequently raise domestic availability by increasing export duty on lump ores to 15 per cent having a 5 per cent duty on fines. Although it will have some marginal impact on the export, the Government will have to look at the question of exports differently by bringing in definitive deterrence. This may be in the form of either prohibitive duty or quantitative restrictions. But, such measures can be brought in only in a phased manner with a clear long term plan.
The Minister said, the other major challenge for the Indian steel and mining industries is the inadequate development of supportive infrastructure. The problem looks more serious in the areas with greater mining potential. He said, the Government has launched infrastructure development plans in unprecedented scale in areas such as power, road, ports, railways, communication and human resource development. However, whether it is a sole Government project or one in the PPP model, progress in implementation is being hit by difficulties in land acquisition, extremist violence and skill shortage. He said, “I am sure, the conditions will change in the course of time to allow for completion of the projects in hand”.
Shri Virbhadra Singh informed that while the Government is doing its bit, a large responsibility lies with the industry and the industry associations. It is the synergy between what the Government does and how the private sector or the industry responds to it that will determine the success of all our efforts, the Minister added.
Delivering the keynote address the Secretary, Ministry of Steel, Shri Atul Chaturvedi, pointed out that the Joint Plant Committee (JPC) of the Steel Ministry has undertake a massive exercise of mapping out the infrastructure requirements of the steel companies in terms of augmentation of new railway line and development of highways. He urged FICCI to commission a study for taking the JPC report forward with specific projects that need to be undertaken so that these could be taken up with the ministries concerned and the appropriate authorities.
As regards forest and environment clearances for steel projects, Shri Chaturvedi said that the Ministry of Environment & Forests has been very cooperative in addressing the issues. He urged companies come up with specific issues so that these could be put on the fast track for clearance. While land acquisition for steel projects continues to pose a major challenge, the Steel Secretary asked industry players to consider using the large land mass that is currently available with the closed units. “I have asked the Ministry of Heavy Industry to map out such land masses and put the information on their website for the benefit of the prospective investor. I hope FICCI will coordinate with the Ministry of Heavy Industry to take the process forward,’’ he said.
The Conference was jointly organized by the Federation of Indian Chambers of Commerce & Industry and Ministry of Mines.
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