The policy that empowers states to make discretionary allotment of iron ore mines may soon go thus cheering up domestic steel firms. A committee set up by the steel ministry to formulate 'national guidelines' for grant and approval of mining lease and licence of iron ore has recommended some sweeping changes in the policy. Its proposals are clearly in favour of captive users of iron ore - steel plants - than mining companies, which trade in ore. The focus of the committee was on a special provision (section 11.5) of the Mines and Mineral (Development and Regulation) Act, 1957, which empowers state governments to make preferential allotment of reconnaissance permit, prospecting licence or mining lease to parties.
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