The government has informed that there is no dearth of iron ore in the country, with 152 million tonne production against consumption of 111 MT in 2013-14. However, Minister of State for Mines and Steel Vishnu Deo Sai replying to query in the Lok Sabha admitted that there were regional shortages of input attributing the gap to the Supreme Court-imposed restrictions on lease renewals and cancellation of mines. Lease renewal in Goa and Odisha and cancellation of mining leases in Karnataka led to regional shortage of iron ore.
Production of iron ore continued to be considerably higher than the consumption and was 169 MT in 2011-12 and 137 MT in 2012-13 against the consumption of 101 MT and 103 MT respectively. To increase value addition and improve iron ore availability for domestic steel industry, export duty on iron ore has been increased to 30 percent. For exports of iron ore pellets, a 5 percent export duty has been imposed. Though, the government has reduced Special Additional Duty on import of melting scrap of iron ore and steel from 4 percent to 2 percent in the Budget for 2015-16.
India is implementing Research and Development programmes to boost it iron ore and steel sector. A new scheme ‘Promotion of R&D in Iron & Steel Sector’ was introduced by the Government in the 11th Five Year Plan which has been continued in the 12th Five Year Plan.