Lok Sabha Question No. 2972 (UNSTARRED), answered on 2025-08-06
Subject: Delay in Auction and Decline in Production
Ministry: MINES
Asked by: Shri Azad Kirti Jha

## GOVERNMENT OF INDIA MINISTRY OF MINES

## LOK SABHA UNSTARRED QUESTION No. † 2972

ANSWERED ON 06.08.2025

## DELAY IN AUCTION AND DECLINE IN PRODUCTION

†2972. SHRI AZAD KIRTI JHA:

Will the Minister of MINES be pleased to state:

- (a) whether it is a fact that the supply of iron ore to various States in the country has sharply declined from the companies over the last several years in Odisha having large share of India's iron ore reserves;
- (b) whether this is due to expiry of mining leases, delay in new auctions and decline in production;
- (c)  whether  it  is  also  a  fact  that  companies  in  Odisha  preferred  to  make  exports oriented due to increase in global prices, thereby affected domestic supply;
- (d)  if  so,  whether  the  secondary  steel  industry  across  the  country  including  West Bengal is in serious crisis and many units are on the verge of closure due to reduced iron ore supply;
- (e) whether the Union Government is formulating any concrete policy to control or ban the export of iron ore so that priority can be given to the domestic industry; and (f) if so, the details thereof?

## ANSWER

## THE MINISTER OF COAL AND MINES (SHRI G. KISHAN REDDY)

- (a):    The  production  of  iron  ore  in  the  country  has  increased  over  the  years.  The production of iron ore in the country during the last 5 years is given below:

|   Sl. No. | Year    |   Production (in Million Tonnes) |
|-----------|---------|----------------------------------|
|         1 | 2020-21 |                              205 |
|         2 | 2021-22 |                              254 |
|         3 | 2022-23 |                              258 |
|         4 | 2023-24 |                              277 |
|         5 | 2024-25 |                              289 |

Further,  iron  ore  production  in  the  state  of  Odisha  increased  by  13%  from  140.93 million tonnes in 2022-23 to 159.22 million tonnes in 2024-25.

(b):  So far, a total of 150 iron ore mines have been auctioned in the country out of which 40 mines are in production. As per the provisions of Section 8A(4) of the Mines and Minerals (Development and Regulation) Act, 1957, on the expiry of the lease period, the lease shall be put up for auction. Further, Section 8B of the Act provides that all valid rights, approvals, clearances, licences and the like granted to a lessee in respect of a mine shall continue to be valid even after expiry or termination of lease and such rights, approvals, clearances, licences and the like shall be transferred to and vested in the successful bidder of the mining lease selected through auction.

There is no delay in auction of mineral blocks and production of iron ore in the country and in Odisha has increased.

(c) & (d):  The production of crude steel in the country during 2024-25 was 112 million tonnes with an estimated iron ore requirement of 179 million tonnes. The production of iron ore in the country during 2024-25 was 289 million tonnes. Therefore, there is sufficient production of iron ore in the country to meet the demand of steel industry.

(e) & (f):  In view of above, question does not arise.

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