Expressing concern over the fact that India may soon become net importer of iron ore from being a major exporter of the raw material, the mining industry is pinning hopes on the new NDA Government to introduce fresh measures to revive the industry.
Federation of Indian Mineral Industries (FIMI) on Wednesday said that with more than 63,000 applications seeking reconnaissance permits, prospecting licences and mining leases lying pending with various state governments, India is set to become a net importer of iron ore in the current fiscal compared to net exports of 117.37 million tonnes in 2009-10.
FIMI President H C Daga told reporters that exports might come down to a single-digit to 9 million tonnes in 2014-15 against 14.42 million tonnes of the previous fiscal. At the same time, imports led by major steel makers, are likely to go up to 15 million tonnes in the current fiscal, he added.
The industry body further said that other issues like high export duty, and ban on production as well as expensive railway freight meant for exports, something which was alien to iron ore miners in the not-so-distant-past, too have led to the current situation.When asked whether FIMI expected things to improve, considering the fact that Mines as well as Steel Ministries have a common minister in Narendra Singh Tomar, the industry body's Secretary General R K Sharma said that these are still early days for the NDA Government.
"The minister has given us a patient hearing, however with the Government having just assumed charge, one cannot expect things to change in two months," he said, adding at the same time that the situation will improve.FIMI said that the "biggest change that has happened with the new Government is the change of mindset".Finance Minister Arun Jaitley in his Budget speech had observed that "the current impasse in the mining sector, including iron ore mining, will be resolved expeditiously".
However, the Finance Minister did not tweak export duty which is 30 per cent now, Daga added.Simultaneously, the FIMI President observed that the new Government is looking into issues with an "open mind", which he said is needed, considering the fact that the contribution of the mining sector to GDP has gone down to 1.4 per cent in FY14."