Date:25/11/2004 URL: http://www.thehindubusinessline.com/2004/11/25/stories/2004112501730300.htm

Back Coking coal scarcity — SAIL, RINL trying to form joint ventures abroad

Our Bureau

Visakhapatnam , Nov. 24

STEEL Authority of India Ltd (SAIL) as well as Rashtriya Ispat Nigam Ltd (RINL) are currently engaged in an attempt to form joint ventures with companies abroad as a permanent measure to overcome the coking coal scarcity, according to Dr Manoranjan, Union Steel Secretary.

He was addressing a press meet here on Wednesday in the steel plant (RINL) on his first visit to the plant after assuming charge as the Secretary.

Dr Manoranjan said that all steel plants in the country — both in the public sector and the private sector — were facing the problem of coking coal scarcity.

"The Australian and other companies are invoking an emergency clause and cutting down on supplies, though our companies have long-term contracts with them. Therefore, the PSU steel companies are trying for the joint ventures. One team is in Canada and another is going to Australia. We expect positive results shortly,'' he said.

On the proposed the steel regulatory authority, he said the Union Steel Minister had floated the idea in the Steel Consumer Council meeting earlier this year "more as a weapon to keep the private sector in check and keep prices within reasonable limits. Otherwise, in a deregulated regime, there is no room for a regulatory authority.''

On the issue of the merger of IISCO and SAIL, he said it was very much on the cards. There were a few issues to be sorted out.

On the expansion plans of RINL here, he said the board had approved the plans and sent them to the Ministry.

They would have to be approved by the Ministry and sent to the Cabinet for consideration. "It will take some time,'' he said.

On the question of captive iron ore mines for RINL here, he said the proposal had run into rough weather, as "the Orissa Government wants to add value to its iron ore deposits. However, if every State adopts this policy, we will get into difficulties. We are trying to work out a more rational iron ore mining policy. Four or five States have all the iron ore deposits and that has to be distributed to the steel plants.''

On the new steel policy, he said the Cabinet was considering it and it may be approved in a few months' time.

The country's steel production this year may be in the range of 36-40 million tonnes and imports 1.5 million tonnes.

"Imports are not increasing. Exports we have curbed to make more steel available in the domestic market,'' he said.