Date:23/09/2004 URL: http://www.thehindubusinessline.com/2004/09/23/stories/2004092301631700.htm

Back `Orissa must take national view on iron ore mining lease'

Our Bureau

Kolkata , Sept. 22

THE Union Steel Ministry is apparently not too happy with the Orissa Government for leasingiron ore mines only to those companies, which are willing to set up steel plants in the State.

According to Ms Binoo Sen, Union Steel Secretary, the Orissa Government should take a national view while offering mining leases because there are several States in the country without any iron ore deposit.

Ms Sen was in the city to address the members of the Merchants Chamber of Commerce in an interactive session. The Union Government, however, has not passed any stricture on the Orissa Government.

"Mining is a state subject. Union Government has nothing to do with it. However, in our meetings with the officials of the State Government, we have requested to them to look into this matter," Ms Sen said.

During the last few months, Orissa has received proposals from leading steel producers, both domestic and international, willing to set up capacity totalling 32.5 million tonnes worth an investment of Rs 94,500 crore in the State.

Regarding the National Steel Policy, Ms Sen said that it was ready and was waiting for the approval of the Union Cabinet. She, however, preferred not to provide any timeframe for the announcement of this policy.

Instead, she said that the policy would focus on increasing steel consumption in India mostly in the rural sector.