The Federation of Indian Mineral Industries (FIMI) stated that the delays in auctions ofmining leases that are due to expire in March are threatening to disrupt India’s iron oreproduction and are raising the prospect of higher imports.
“We see a bleak scenario as of now for the next year for the mining industry andemployment in the sector. If we cannot produce, then we will import,” RK Sharma,Secretary General of FIMI.
Sources said that the Government is taking steps to avert supply disruptions. Themines department is in talks with the federal environment ministry to allow winningbidders of mines whose leases expire by March 2020 to start operations without delayif the mine has valid environmental and forest approvals.
The steel industry has expressed serious concern with Government inching close tosigning Regional Comprehensive Economic Partnership which will open duty-freeimports into the country from China.The RCEP is a proposed free trade agreement between the ten member states of theAssociation of Southeast Asian Nations (ASEAN) countries, China, Japan, India, SouthKorea, Australia and New Zealand.
The negotiations for signing RCEP was formallylaunched in November 2012 at the ASEAN Summit in Cambodia and is now in theadvanced stage of finalisation.Compared to other countries steel production cost in India is higher by about $40 atonne due to creaky infrastructure, high taxes and expensive cost of capital.
has urged the government to provide an export incentive of $40 to put both thedomestic and global companies on the same footing before opening up the steelmarkets for global competitors.
Export of steel from India in August has grown 37% compared to last year with steelcompanies trying to beat the domestic slowdown by exporting more to other countries.However, in the first five months of this fiscal exports has dropped 7.5%.
Trade ministers of the 16-nation RCEP grouping will meet in Bangkok on October 10-12. Commerce and industry Minister Piyush Goyal will attend the meeting. Technicalnegotiations for the Regional Comprehensive Economic Partnership (RCEP) deal wereover when chief negotiators of various countries met in Vietnam last week after 28rounds of talks.
The central government’s decision to allow up to 100% foreign direct investment for anycommercial coal mining project does not mean a ready flow of such money, says astudy.As global capital flees thermal coal, the time is not congenial to attract foreigninvestment.
Leading global investors are moving towards renewable energy, says theDelhi-based Centre for Financial Accountability.
Singareni Collieries Company Ltd (SCCL) has increased coal supply to APGenco from15,000 Metric Tonnes to 30,000 Metric Tonnes and Mahanadi Coalfields Ltd (MCL) toimprove supplies from 7,500 Metric Tonnes to 19,000 Metric Tonnes for thermal plantsin Andhra Pradesh.
Telangana Chief Minister K Chandrasekhar Rao instructed SCCL to improve thesupplies to APGenco thermal plants after Andhra Pradesh Chief Minister YSJaganmohan Reddy sought more supplies. APGenco thermal plants have lately beenhit by lower supplies due to workers’ strike in MCL and SCCL.