BL reported that an Indian Parliamentary panel has asked the steel ministry to set up a monitoring mechanism to oversee utilization of raw materials such as iron ore and coal by the public sector companies.

The Standing Committee on Coal and Steel said it was surprised to find that the steel ministry had no such monitoring system to augment and ensure prudent utilization of critical raw materials such as coking coal and iron ore.

The panel said that “Optimum utilization of these raw materials is of fundamental importance as they play a very important role in physical and financial performance of steel companies.”

State run companies such as SAIL and RINL utilize domestic iron ore but continue to depend on imported coal due to the inferior quality of indigenous coking coal.

The panel noted that although the Indian steel industry has diversified its product mix, the problem of high ash content in locally available metallurgical coal and dependence on imported coal are impeding its foray into value added steel used in the automotive, heavy machinery and infrastructure sectors.

However, the panel was constrained to point out that the steel ministry could not come out with concrete action to deal with the problem.

It suggested that the ministry chalk out an action plan to deal with the problem of high ash content of indigenous metallurgical coal that would help reduce dependence of the Indian industry on imported coal.

The panel has also suggested that the steel PSUs further augment sintering and pelletization facility in their respective mines to cope with the demand for additional iron ore.

(Sourced from BL)