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Auctions For 20 Major Iron Ore Mines on Cards: A Move to Revive Ailing Industry

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The government will auction about 20 major iron ore mines this year in its first such sale ever, as it looks to revive its corruption-tainted mining industry.The mining sector has been mired in controversy over illegal allocation of resources. Once the world's third-biggest iron ore exporter, India now imports the steel making ingredient due to a court-led crackdown on illegal mining.

Source : Business Standard

SNP Insight

The proposed auction of iron ore mines by the government comes as a respite for the already ailing steel industry players in the country. The impending allocation of domestic assets in fair and just manner will not only boost domestic production but in turn help the companies to sustain cheaper imports of steel fromm Chinese counter part in the country.However all these benefits can be reaped only after a sufficient gestation period of 2-3 years for the development of the mines. Also securing the timely clearances & approvals for the mines hold the key for the timely development. 

Source: SNP Infra Research