This document summarizes the Indian Ministry of Mines' response to Lok Sabha Unstarred Question No. 2972, addressed on August 6, 2025, regarding delays in iron ore auctions and a decline in production. The response, delivered by the Minister of Coal and Mines, Shri G. Kishan Reddy, addresses concerns about a sharp decline in iron ore supply to various states, particularly from Odisha, and its impact on the domestic steel industry.
The Ministry refutes the claim of declining iron ore supply, stating that national production has increased steadily over the past five years, from 205 million tonnes in 2020-21 to 289 million tonnes in 2024-25. Specifically, iron ore production in Odisha increased from 140.93 million tonnes in 2022-23 to 159.22 million tonnes in 2024-25, representing a 13% increase.
Regarding auction delays, the Ministry clarifies that 150 iron ore mines have been auctioned, with 40 currently in production. The response cites Section 8A(4) and 8B of the Mines and Minerals Development and Regulation Act, 1957, ensuring the auction of leases upon expiry and the transfer of existing rights and approvals to successful bidders, thus negating concerns about delays.
The Ministry also addresses concerns about domestic supply shortages due to export-oriented practices. It states that in 2024-25, crude steel production was 112 million tonnes, requiring an estimated 179 million tonnes of iron ore. With domestic iron ore production at 289 million tonnes in the same period, the Ministry asserts that sufficient supply exists to meet the demands of the steel industry.
Therefore, the Ministry concludes that the questions regarding the formulation of a policy to control or ban iron ore exports to prioritize domestic industry do not arise, as domestic production adequately meets the needs of the steel sector.
Key Entities Referenced
Ministry of Mines: A ministry within the Government of India responsible for the administration of mines and minerals.
Lok Sabha: The lower house of the Parliament of India.
Shri Azad Kirti Jha: A member of Lok Sabha who raised the unstarred question No. 2972 regarding the supply and production of iron ore.
Odisha: A state in India with significant iron ore reserves, mentioned in the context of declining supply and export orientation.
West Bengal: A state in India where the secondary steel industry is purportedly facing a crisis due to reduced iron ore supply.
Shri G. Kishan Reddy: The Minister of Coal and Mines who answered the question regarding iron ore production and supply.
Mines and Minerals Development and Regulation Act, 1957: The Indian law governing the regulation of mines and minerals development in India.
Steel Industry: Domestic industry which requires iron ore for its production.
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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