National Mineral Policy 2006 - Department of Mines

import of POL [petrol, oil, and lubricants] at around $ 21 billion. During the last 3 decades,cumulative exports of iron ore were over 1 billion tonnes of mostly high grade ore for a totalearning of perhaps $ 30 billion.4. The country’s natural advantage of rich iron ore reserves must not be frittered awayby continued positioning as a raw material supplier to the developed world and now, even torapidly industrialising China. Nothing should be allowed to shift focus from or delay ourattaining our rightful place as a major producer of steel and manufacturing in keeping withour size, population and resources. With growing industrialization and manufactures,production of steel and downstream products is clearly at a take-off point. Our iron orereserves of all grades need to be channelised into steel production, with exports of iron ore asecondary activity, diminishing in inverse proportion to increasing steel production andconsumption.5. The entire exercise undertaken by the Expert Group as well as formulation ofguidelines for the SCHEME OF PREFERENCES in the matter of grant of leases, and otherobservations and recommendations are customized to this strategy.6. Any departure from the principles of natural justice and first-come-first-served, asenshrined, inter alia, in the MMDR Act, has to be based on larger public interest and inconsonance with, though not limited, to the matters specified in Section 11(3)(a) to (d) of theAct, by making use of specific provisions contained in Section 11(3)(e) ‘such other matters asmay be prescribed’.7. The SCHEME OF PREFERENCES recommended, hereinafter, is designed to makeconcrete elaboration in terms of Section 11(3)(e) specific to the rapid and orderly growth ofthe steel industry and limited to the three ferrous mineral, i.e. iron ore, manganese ore andchrome ore which are critical inputs.Basis for Preferences8. The proposed SCHEME OF PREFERENCES is designed to sub-serve thefollowing main objectives:-239