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Budget 2026: Vedanta seeks incentives for low-grade iron ore processing
25 Jan 2026

Vedanta's iron ore mining division, Sesa Goa, has urged the Indian government to incentivize low-grade iron ore beneficiation in Union Budget 2026.

The company believes that targeted policy support and infrastructure investment are key to making this process economically viable and expanding the sector.

The process of low-grade iron ore beneficiation improves the quality of poor-quality ores by removing impurities such as silica, alumina, and phosphorus.

Beneficiation could secure domestic supply and boost revenue
Economic impact

India's steel demand is expected to hit 300 million tons by 2030.

The beneficiation of low-grade reserves could ensure domestic supply security, create jobs, and add billions to government revenues through increased mining and exports.

Currently, higher-grade ore meets domestic needs but low-grade stockpiles remain untapped due to policy hurdles like duties and regulatory delays.

India has a massive low-grade iron ore inventory
Untapped resources

India has an estimated 300 million tons of low-grade iron ore at mine heads, which remains underutilized due to high upfront costs for beneficiation plants and supporting infrastructure.

"There is a very urgent need to bring some kind of beneficial duty structure or incentive structure to beneficiate this material," said Sesa Goa CEO Navin Jaju.

Steel majors see beneficiation as crucial for Atmanirbhar Bharat
Strategic importance

Steel majors, who depend on a consistent supply of ore amid global price volatility, consider this issue crucial for Atmanirbhar Bharat in metals.

India produced 289 million tons of iron ore in FY25 with exports hitting record highs. However, the country's beneficiation capacity lags at under 20% of its potential.

Jaju urged a time-bound framework in the upcoming Union Budget to incentivize beneficiation and potentially turn low-grade waste into a strategic asset.