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The State Government has set up a high-power official committee to study and reply to the Central Empowered Committee's (CEC) recommendation on capping the production of iron ore at 30 million tonnes a year.
The State Government panel will be headed by the Additional Chief Secretary, Mr K. Jairaj. The State has, meanwhile, filed an affidavit before the Supreme Court, which had appointed the CEC, praying for lifting the ceiling limit.
Speaking to The Hindu, The Secretary, Department of Mines, Mr G.V. Kongawad, disclosed that the Government constituted the committee to convince the Supreme Court on the need to lift the ceiling and presenting a point by point response to the Court on the recommendations of CEC.
Reacting to recommendations of the CEC, he said that, in the interest of future growth of steel sector, with due regard for the environment protection, the Government pleaded for lifting the ceiling on ore production. The Government would present its argument in this regard during the hearing of the case on February 29.
State's affidavit
The State Government, in its detailed affidavit in the Supreme Court on February 8, had prayed for lifting the ceiling limit, noting that the cap on production would hinder its plan to meet the future demands of the steel industry.
Assuring the court of taking all necessary steps to protect the environment in accordance with the norms, the Government in its affidavit pointed out that it would be difficult to meet the demand for ore from the major steel producers, who have been promised to set up steel plants in the State.
The affidavit detailed that the State Government had signed a memorandum of understanding (MoU) with various steel producers for a combined capacity addition of about 55 mt at an estimated investment of Rs 2.56-lakh crore during the global investors meet in June 2010.
Some of the big names waiting for approval to invest in the State include ArcelorMittal, Poso, Bhushan, Surya Roshini, Tatala Mealiks among others.
While JSW steel, (which is facing allegation of receiving 12.97-lakh tonnes of illegal ore by over loading and caused loss to the tune of 324-crore to the State Exchequer) is in the process of expanding its capacity in the State from 10 mt a year to 16 mt, there are about a dozen new proposals waiting for allotment of captive mines.
FIMI upset
Meanwhile, the Federation of Indian Mineral Industries (FIMI) is upset with the recommendations of CEC, and is of the view that that the mining industry should have been consulted before making recommendations.
Speaking to The Hindu, the Secretary General FIMI, Mr R.K. Sharma, said that the recommendation against granting new mining licences would be detrimental to the steel industry.
The Director, Southern Chapter of FIMI, Mr D.V. Pichamuthu, is of the opinion that a ceiling on production is impractical.
> muralidhara.k@thehindu.co.in
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