With an eye on increasing iron ore exports, which would help to lower the current account deficit, the Government hopes to get relief on iron ore mining in Goa by November.
Dinsha Patel, Minister for Mines, said that he had a meeting with the Environment and Law Ministries and he expects the issue to be resolved by October end-November first week.
He was speaking to reporters on the sidelines of an event organised by the Indian Chamber of Commerce.
The Supreme Court had earlier banned iron ore mining in Karnataka and Goa. But, subsequently, the court allowed mining in Karnataka with some conditions. However, the ban continues in Goa and now the Centre is planning to move to the apex court for relief.
According to an estimate by the Indian Bureau of Mines, the total availability of iron ore resources as on April 1, 2012 is 28.526 billion tonnes of which only 8.115 billion tonnes of reserves are capable of economic exploitation.
The total iron ore production in 2012-13 was 140.1 million tonnes compared with 167.3 million tonnes a year ago. Normally production of one tonne of steel requires 1.6 tonnes of iron ore.
Patel also said that although the production of iron ore in the country had come down, the demand of the domestic steel industry was still being met.
India, which was the third largest exporter of iron ore till two years ago, ended up importing around one million tonnes 2012-13. The fall in iron ore output and exports come in the wake of a mining ban by the Supreme Court in 2011 in two States following complaints of illegal mining.
Residual stake sell
The Mines Ministry intends to approach the Cabinet Committee on Economic Affairs (CCEA) for residual stake sale in Hindustan Zinc and Balco only after detailed consultation. The stake sale in these two companies can generate over Rs 21,000 crore for the Government.
The Minister said that detailed discussions are taking place regarding the stake sale. Since this issue has witnessed many legal hurdles, the Mines Ministry does not want to take a chance before moving to the CCEA for final clearance, he added. The Government owns 26 per cent in Hindustan Zinc and 49 per cent in Balco.
Balco and Hindustan Zinc were strategically sold to Vedanta Group back in 2000-02. Though there was a call option for Vedanta, but it could not be exercised due to a legal battle and other reasons. Now the Government’s legal officers have cleared the process. Even the Finance Ministry has said that all legal hurdles have been cleared.