With the dropping of iron ore production due to ban in some states, India is all set to become a net importer of ore in the current fiscal, Federation of Indian Mineral Industries (FIMI) said on Tuesday.

The situation can, however, be improved drastically provided government ensures speedy clearances and fiscal policies are reversed to the pre-2010 level, FIMI's President H C Daga said.
"There is an urgent need for speedy forest, environment and other necessary clearances for pending or new mining licences. Fiscal policies also need to be reviewed," he added. Production of iron ore come down to 115 million tonnes (MT) in the last fiscal from 218 MT in 2009-10, mainly due to the mining ban in major iron ore producing states, including Karnataka and Goa. Increase in export duty coupled with a rise in railway freight for iron ore has impacted the industry hard.