Steelmin seeks more power on grant of iron ore mines

The Steel Ministry has sought absolute powers from the government on grant of mining rights for iron ore and other minerals to steel firms, a request that would, if granted, expedite projects, including that of Posco and ArcelorMittal, which are stuck for want of secure raw material supply.

"...All matters pertaining to exercise of powers on behalf of the Central Government in respect of iron ore, manganese ore and chrome ore should be delegated to the Ministry of Steel," Steel Secretary Atul Chaturvedi said in a letter to the Cabinet Secretary K M Chandrasekhar.

Under the existing rules, grant of mineral concession for all minerals, including iron, manganese and chrome ores, rests with the ministry of mines, which gives final approval to the recommendations of the state government.

"...I would request you to make necessary amendments in the GoI (Allocation of Business) Rules, 1961 to make provision for exercise of the powers of the Central Government by Ministry of Steel under the provisions of MMDR Act, in respect of iron ore, manganese ore and chrome ore," Chaturvedi wrote.

However, such a move may deepen the rift between the steel and the mines ministries, that differ over matters related to iron ore export and grant of leases among others.

When contacted Mines Secretary Santha Sheela Nair said, "We have not received any formal communication on it and as and when required we will send a reply to the Cabinet Secretary. If he is looking after the interest of his ministry, I will protect the interest of my ministry."