Allow steel cos to own captive ore resources: Assocham

Industry body Assocham today called for allowing steel companies to own captive iron ore resources for sustainable growth and country’s infrastructural development.

All the integrated steel plants capable of undertaking viable, scientific and efficient iron ore mining should be made available captive iron ore mines, the Associated Chambers of Commerce and Industry of India (Assocham) said in a statement.

"During the pre-liberalisation era, most steel plants were provided with captive iron ore mines which is the only domestic resource input for competitiveness of steel business," said Assocham secretary general DS Rawat.

At present, about 65 million tonne per annum (MTPA) steel is produced in India while there is a requirement of nearly 500 MTPA for developing infrastructure.

Besides, the industry body demanded a ban on iron ore exports, conserving it for domestic consumption.

It had previously raised concerns over government’s decision to impose 26% tax on profits from coal mining saying it will make Indian mining and mineral based industry most heavily taxed and uncompetitive.

The proposed new mining law, Mines and Mineral (Development) Regulation Act, has a provision to share 26% profit by coal miners and 100% royalty by others with the project affected people.

The royalty proposal might lead to an annual revenue loss of Rs 6,000 crore to the exchequer.