(a) whether the steel companies in Karnataka have been facing acute shortage of iron ore to run their steel plants;
(b) if so, the details thereof, during the last three years, company-wise;
(c) whether the Government has taken any steps to safe guard the interests of the steel companies; and
(d) if so, the details thereof and if not, the reasons therefor?
THE MINISTER OF STEEL (SHRI DHARMENDRA PRADHAN)
(a)&(b): The production of iron ore in the country is sufficient to meet the current demand/consumption of iron ore by domestic steel industry. However, there is regional shortage in the state of Karnataka due to capping on production of iron ore by Hon’ble Supreme Court at 35 MTPA.
The production of Iron ore in the state of Karnataka during last three years are as below:-
(in million tonnes)
2016-17 2017-18 2018-19 (P)
26.483 28.724 29.796
(P): Provisional; Source: IBM
Steel being a deregulated sector, Government does not have information on iron ore requirement or consumption of private steel companies in Karnataka.
(c)&(d): In order to ensure availability of iron ore for domestic steel industry, Government has imposed export duty of 30% on all forms of iron ore except low grade (below 58% Fe) iron ore (lump & fines) which have nil export duty.
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