(a) whether several steel plants in the country including those in
the public sector do not have their own captive iron ore mines;
(b) if so, the details thereof;
(c) whether cost of production of steel is higher in these plants
as compared to other plants which have captive iron ore mines;and
(d) if so, the steps taken by the Government in this regard?
MINISTER OF THE STATE IN THE MINISTRY OF STEEL (SHRI VIRBHADRA SINGH)
(a)to(d): A Statement is laid on the Table of the Lok Sabha.
STATEMENT REFERED TO IN REPLY TO PARTS (A) TO (D) OF THE LOK SABHA STARRED QUESTION NO. 398 TO BE ANSWERED
ON 30.07.2009, TABLED BY SHRI A. VENKATA RAMI REDDY, MEMBER OF PARLIAMENT REGARDING CAPTIVE IRON ORE MINES
(a)&(b): As per the information available with the Ministry of Steel only Tata Steel Limited and Steel Authority of India
Limited are the two major steel producers who meet their full requirement of iron ore from captive sources. All other major
steel producers either partially meet their requirement from captive sources or obtain the entire requirement of iron ore
from the market.
(c) Cost of production of steel is dependant upon several factors such as raw material, cost of transportation, technology,
manpower, energy etc. However, iron ore being one of the major raw material inputs for iron and steel making, the primary
steel producers having captive iron ore mines enjoy the relative benefit of lower cost of steel production.
(d) The Government has approved National Mineral Policy’ 2008 which inter-alia provides for preference to value adders
in the allocation of mineral concession. The Hoda Committee’s recommendations as approved by the Government also make
provision for preferential allocation of captive iron ore mines to steel capacities already in existence as on 1st July,
2006.