Sushim Banerjee, Director General of Institute for Steel Development and Growth (INSDAG) cautioned that the Indian steel industry may face severe iron ore shortage in the coming years.
Expressing his views in a leading media, he said the bigger issue facing the industry is iron ore shortage. This is going to hit the industry hard.
He argued that Indian steel firms did not pay adequate attention to beneficiation or pelletisation, processes that would have enabled them to use ore fines or convert low-grade ore to high-grade ones.
He also pointed out that delay in statutory clearance for projects is another hurdle in the sector. In this regard, he welcomed the plan by the central government to set up an empowered committee on big-ticket investments (National Board of Investment) to provide a single-window clearance for mega projects, and the long-drawn fight between the ministries of coal, mines, steel and environment will be resolved.
Industry players said that steel firms are looking at the government as a catalyst to create an enabling environment that would facilitate investment, both public and private, through the public-private partnership route.
This will help make up the massive infrastructure deficit, reduce irrational subsidies so that adequate funds are available for productive investment, and boost the manufacturing sector by setting up industrial clusters.