It is pertinent to note that, the single-most important factor which affected steel companies in 2014 was iron ore shortage, which forced India’s top two private steel companies—Tata Steel Ltd and JSW Steel Ltd—to import the raw material.
Tata Steel’s captive ore supplies were hit by the mining ban in Jharkhand and Odisha, while JSW Steel was affected by the inability of miners in Karnataka to raise output to 30 million tonnes per annum (mtpa) permitted by the Supreme Court. It is important to note that Tata Steel imported iron ore for the first time. The steel index component in the index of industrial production (IIP) is signalling a weak trend since September; but it seems the ruling NDA Government is not bothered.
It is ironical that, as a country, we have to import iron ore despite having some of the best iron ore reserves in the world. India is still to have policy clarity and stability, especially on mine-lease renewals and forest clearances, which are key to the growth of domestic steel industry. The point which I want to stress is that: The UPA and the NDA have already destroyed the "Gems and Jewelry Sector" and now Steel could be another one on the anvil; if immediate steps are not taken]
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