No Plans to cap Iron Ore Prices - Indian Govt

Iron ore miners can heave a sigh of relief as the ministry of mines does not have any plan for fixation of iron ore prices, which essentially means that the price of the key steel making raw material will continue to be driven by the market dynamics.

"Ministry of mines does not have any plan for fixation of iron ore prices. They are the administrative ministry," Mines secretary Arun Kumar said in Delhi.

Following direction of the Niti Aayog, the steel ministry had set up a committee, headed by its additional secretary, on iron ore pricing as they move like "sensex" which is detrimental to the interest of the steel producers.

"It's a free market, not regulated. Government can intervene is there is a crisis. But, there is nothing sort of this, as of now," he said.

The committee had at least four sittings on the issue and was expected to come out with its recommendations before the end of the last month.

A senior official said mines ministry does not find any merit to cap the price as there is enough production in the country than the steel industry can consume.

"We feel there is no need for controlling the price," he said.

India produced 190 MnT iron ore last fiscal.

The committee was mandated to find the ways and means of checking iron ore prices so that there is no profiteering by the miners.