Policy to ensure availability of cheap iron ore within a month

Policy to ensure availability of cheap iron ore within a month

iron ore

New Delhi: To make sure that iron ore will be available at a cheaper price a policy initiative is being drafted by the government which will be out with details within a month.

The development comes at a time when the steel sector is swaying under the impact of high raw material costs.

An official privy to the development said, “What policy steps we need to take to ensure that iron ore is plentifully and cheaply available is something which we are working on and there could be various formulations to that.”

“We are examining those and hopefully in a month or so we would be able to say that these are recommendations,” the official said, adding on that “Niti Aayog has been mandated to examine that. They will examine that and come and give us the suggestions”.

As a basic principle “…prices of raw material resources should be cheap because that gives us (Steel Ministry) a competitive advantage because we are involved in many schemes,” the official said.

NMDC is the single-largest iron ore producer in the country.

Earlier, Steel Minister Chaudhary Birendra Singh had said that to study sale of iron ore by NMDC an expert group would be formed by the government that will also analyse the mining giant’s ore pricing and auction.

The prices of higher grade iron (lumps) have been raised by NMDC by Rs 100 per tonne to Rs 2,325 per tonne for the current month.

The prices for iron ore fines has also been raised by the state-run firm, and these are inferior grade ore, by Rs 100 to Rs 2,085 per tonne for the month of February.

News source: economictimes.indiatimes.com

Picture source: google.co.in