During his visit he spoke to India Chronicle, here are the excerpts:

India Chronicle:   India is growing exponentially in all sectors, what initiatives is Government of India taking within the country to increase production in the steel sector?

Minister:  In line with the overall high growth trends in Indian economy, steel demand nationally is also increasing rapidly.  The National Steel Policy which we had framed in 2005 had projected a national steel output of 110 million tonnes annually by the year 2020.  However, recent trends indicate that these targets are likely to be surpassed.  India presently produces nearly 45 million tonnes of steel annually and this output looks set to be doubled by the end of the 11th Plan Period (2012).  Going by current trend, Indian steel output may cross 200 million tonnes annually by 2020.

In line with these trends, our public sector steel companies are ramping up their capacities.  The Steel Authority of India Ltd. (SAIL) which currently produces around 14 million tonnes per annum is implementing a project to enhance its capacity to around 25 million tonnes per annum (mtpa) by the year 2010, while Rashtriya Ispat Nigam Ltd. (RINL) will be doubling its output to 7 mtpa by this time.  The investment and expansion projects of these two PSUs would be around US$ 12 billion in the next 3 years.We are also attempting to put in place an enabling policy environment for facilitating private sector investments in the Steel sector, and a large number of MOUs in the Steel sector have been signed with the State Governments in the last 2 years.  We are also attempting to rationalize the legal structure as well as policies for allocating iron ore to steel producers, while also

building up the environment necessary for steel production and transportation. It is expected that these measures will lead to the transformation of India as a leading steel producing nation over the next few years.

India Chronicle: Traditionally Australia has been primary source of import of coking coal for India.  With the increase in demand, are you exploring alternate sources of procurement?

Minister:  India has been traditionally sourcing coking coal from Australia due to the low ash content and large scale availability of the same. There have been no problems thus far with relation to procurement of coking coal from Australia and India is now the second largest importer of coking coal from Australia. We are here to further strengthen and ensure availability of coking coal in the future. We are confident that a large part of our increased demand can be met by Australia itself.  We are also exploring the possibility of investing in strategic stakes in Australian coking coal mining companies as well as in coking coal properties here.  We are also in touch with other potential suppliers

India Chronicle : You are with a high-level delegation in Australia to explore opportunities in the resources sector for steel production.  What has your experience been so far?

Minister : Australia has been a key partner for sourcing critical raw material for the Indian steel industry.  In order to meet our ambitious steel production plans, we have to ensure the availability of key raw materials like coking coal from diverse sources like Australia. 

My delegation has had meetings with the Australian Federal Minister for Industry & Resources, Mr. Ian McFarlane, as well as other State Government Ministers, officials, Chambers of Minerals & Mining Industries and private companies, and their response has been very encouraging. 

We are anticipating an enhancement in the availability of critical raw material to keep up with our rapidly increasing demand.

India Chronicle: Is Australia able to maintain a steady supply despite an increase in demand?

Minister : India has been importing coking coal from Australia and now has become the second largest importer of coal. We are confident that we would get a steady flow of coal from Australia considering its vast resources. After this visit my opinion is strengthened further.

India Chronicle: What was your experience with the private sector, Illawara coking coal mines at Wollongong and Port Kembla. What are the best practices India can adopt to increase productivity in these sectors?

Minister: The experience has been very positive. The visit to Port Kembla has provided us with the knowledge of high speed cargo handling and the working of the system in greater detail. We hope this experience will enable us to implement many useful strategies in our own mines and ports.

Australia is also advanced in terms of mining software, and this is another area where we hope to work actively together.