India must double iron ore mining capacity by 2030 to meet NSP target: Govt

India will need to double its iron ore mining capacity by 2030 to meet demand as per the Nationa Steel Policy (NSP), 2017, Dr V.K. Saraswat, Member, NITI Aayog, Government of India, said while speaking at the 10th India Minerals and Metals Forum, organised by the Indian Chamber of Commerce (ICC) on 29 Jun'21.

Dr Saraswat said that even after three years of the auction process no large mine granted through this method has been able to commence production. "Only 53 mines have been auctioned till date and three have been able to commence production. There are major issues of coking coal, logistics infrastructure, land acquisition, increased requirement for consent, increase in compensation and no upgrade in technology," he said.

In terms of steel, he said that growth in the infrastructure, power and cement industries, attractive opportunities arising through the PLI scheme, policy support for MSMEs etc are driving steel demand. Domestic production has gone up 13% in the last five years from 129 million tonnes (mn t) in 2015 to 206 mn t in 2019 at a CAGR of 12.4%. Consumption has gone up from 115 mn t in 2014-15 to 160 mn t in 2019. Major efforts are being made toward achieving the goals of the NSP by 2030-31, he said.

But, the sector overall faces severe challenges in cost competitiveness in terms of high royalty and low import duty, he said.

However, with all modifications and changes brought about by the government and industry together, by 2050, almost one-fifth of the steel produced globally will come from India compared to around 5% at present, he observed.

"India is already the world's second-largest steel-producing country and it is expected to increase its annual production volume by an amount almost twice that of Europe by 2050," he concluded.