National Mineral Policy 2006 - Department of Mines

technology to enter the Indian steel scenario; through the platform of an Indianpublic limited company so that the Indian public at large can also share in theirprosperity. Such entry would bring in its wake multiplier benefits of latestconstruction and operating technologies in raw material processing and steel makingon the one hand and on the other, lead to deeper integration of Indian steel with theworld market place.(v)Such entry should, however, be limited to only a few large scale projects of, say,minimum 10 mtpa which can be considered of national importance, in order tomake a quantum jump in steel production in quantity and quality.(vi)Special provision needs to be made for affirmative action to promote at least onemajor integrated steel plant with all its ancillary and multiplier benefits for locationin or near schedule (tribal) areas in keeping with the purposes of Article 244(1) of theFifth Schedule of the Constitution.(vii)A large number of steel plants based on small blast furnace and/or direct reduction arecoming up in dispersed or clustered locations spread across the country. Such smallerdistributed and variegated plants do serve a niche purpose in a large continentaleconomy like India by producing customized grades and special qualities, servingsmaller markets, spreading employment and technology with multiplier effects inrural and more remote areas etc. Hence, the iron ore needs of such plants also deserveto be fully met. Since it is neither feasible nor technologically desirable to grant smallleases to each and every such plant, they would continue to be catered to by the largenumber of small mines already operating in various iron ore areas. However, to theextent that such smaller units can come together as groups or partnerships, withcomplimentary and optimum utilization of different grades and types of iron ore fromlarge scientifically operated mines and agglomeration plants they deserve to beencouraged to do so by preferential grant of leases.14 (i) After providing the 1st Preference to producers of steel, by way of captive/semicaptivemines, it is essential to implement policy measures for encouraging a globallycompetitive mining industry per se, working to world benchmarks of scientificmining, optimum utilization of all mined material, beneficiation, systematic and time242