Question : EXPORT OF IRON ORE



(a) whether the Government has set up an expert group to review guidelines on iron ore mining and its exports;

(b) if so, the details thereof;

(c) whether the expert group has recommended total ban on export of iron ore;

(d) if so, the details of the recommendations with special reference to exports;

(e) whether private domestic steel industry has also requested a ban on export of iron ore;

(f) if so, the details thereof; and

(g) the reaction of the government thereto?

Answer given by the minister

MINISTER OF CHEMICALS & FERTILIZERS AND MINISTER OF STEEL (SHRI RAM VILAS PASWAN)

(a)to(g): A statement is laid on the Table of the Lok Sabha .

STATEMENT REFERRED TO IN REPLY TO PARTS (A) TO (G) OF THE LOK SABHA STARRED QUESTION NO.33 TO BE ANSWERED ON 20/2/2006 TABLED BY S/SHRI SURENDRA PRAKASH GOYAL AND DR.RAJESH MISHRA, MEMBER OF PARLIAMENT REGARDING EXPORT OF IRON ORE

(a)&(b): The Ministry of Steel constituted an `Expert Group`, on 20 the April, 2005, for formulating guidelines for preferential grant of mining leases, for iron ore, manganese ore and chrome ore by state Governments. The composition of the `Expert Group` and its terms of references are given in Annexure-I. The `Expert Group` has submitted its report to the Ministry of Steel on 26.8.2005.

(c)&(d): Exports of iron ore did not form a part of the terms of reference of the `Expert Group` and hence no specific recommendation has been made in the report of the `Expert Group` for total ban on iron ore exports.

(e)&(f): Some steel producers and associations representing various sections of the steel industry have represented for placing curbs on export of iron ore.

(g) The present Foreign Trade Policy, for the period 2004-09, already prescribes canalization through MMTC of export of iron ore of +64 % Fe content from all sectors except ore of Goan and Redi origin. Besides, quantitative ceilings on export of high grade iron ore from the Bailadila sector have also been prescribed. While reviewing the export policy, Government takes into account views of all stake holders including steel producers and their associations.

Annexure-I

A. COMPOSITION OF EXPERT GROUP CONSTITUTED FOR FORMULATING NATIONAL GUIDELINES ON IRON ORE, MANGANESE ORE AND CHROME ORE MINING

1. Sh. R. K. Dang, Ex-Secretary, Government of India , Ministry of Mines - Chairman

2. Director General, Indian Bureau of Mines - Member

3. Managing Director, Tata Iron & Steel Co. - Member

4. Chairman, Steel Authority of India Ltd. - Member

5. Executive Director, Sponge Iron Manufacturers Association - Member 6. CMD, National Mineral Development Corporation Limited - Member

7 Director General, NEERI - Member

8. Secretary General, Federation of Indian Mineral Industries - Member

9. Principal Secretary, (Mines), Govt. of Karnataka - Member 10. Principal Secretary, (Mines), Govt. of Orissa - Member 11. Joint Secretary, Ministry of Mines - Member 12. President, Indian Steel Alliance - Member 13. Sh. Ajoy Kumar, Joint Secretary, Ministry of Steel - Member Convener



B. TERMS OF REFERENCE OF THE EXPERT GROUP

`To formulate guidelines pertaining to Iron ore, Manganese Ore and Chrome Ore regarding giving preferential mining rights to certain persons by the State Governments under Section 11(5) of MMDR Act, 1957.`