NEW DELHI, Aug 22: Mineral-producing states are expected to start auction of mines bearing minerals such as iron ore, bauxite and limestone by October and November, Steel and Mines Minister Narendra Singh Tomar said today.
“I feel mining auction will begin in October and November. I have spoken to all the Chief Ministers of the mineral-producing states, and the process has started there,” Tomar told reporters here.
The Minister also said the government is in the process of finalising the guidelines of the District Mineral Foundation (DMF) as well as the miners’ contribution to it and will notify them very soon.
“DMF rules are being framed and it will be done soon. The amount of contribution will also be decided soon,” he added.
On the issue of steel producers terming the recent hike in import duty for steel products as “ineffective”, the Minister said the Ministry’s effort is to see how it can protect the industry.
“On this, we keep in touch with the industry as well as the Ministries concerned from time to time,” Tomar added.
Domestic producers are complaining that the recent hike of 2.5 per cent on import duty on steel products will not help the industry as this will be offset by China’s move to devalue the yuan.
On demand by domestic aluminium producers on hiking import duty due to adverse impact from cheap Chinese imports, Tomar said: “Industry thinks from its perspective and the government thinks from its own. Our effort is to coordinate with all stakeholders and take a decision.”
Domestic aluminium producers have been urging the government to increase the import duty on the metal as the global prices are at record low and China is exporting the metal at very cheap rates, which is adversely impacting the sector in the country.
Asked on the government’s take on the Posco issue, Tomar said that since the Mines and Minerals (Development and Regulation) Amendment Act, 2015 has been passed, Posco will now have to bid for mines.
Explaining the whole issue surrounding the global steel giant, the Minister said: “Posco had an MoU with the Odisha government. When the NDA government came to power, we saw that the MoU was not renewed. We asked the Odisha government to notify the area (mining) and send it back to us and then we can think of acting on it.”
He added: “But when the file came back, we had already put the MMDR Act draft on the public forum and it was not possible for the government to act on Posco’s issue. We welcome them. They can come in mining auction, in value addition,” (PTI)
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