The government on Tuesday said a steel policy is likely to be formulated by this year-end even as it constituted a high level committee to look into the issue of iron ore availability.

"We hope to put in place a steel policy by this year-end which would lay down the roadmap for development of the industry," V K Duggal, steel secretary, said on the sidelines of the Sponge Iron Manufacturers' Association meeting in New Delhi.

Duggal said the policy would be in the form of a vision statement for future growth of the industry.

He said the committee on iron ore, which has been set up to look into the problems pertaining to ore availability for sponge iron units, would submit its findings soon.

The committee, headed by S N Dash, joint secretary (steel), would comprise representatives from industry bodies, state governments besides those from the mines ministry.

Duggal said that a long term solution to problems of sponge iron units would lie in augmenting production through opening of new mines in private and public domain and by re-adjusting supply side commitments to favour domestic consumers.

In the short run, problems could be addressed by way of removing operational and transportation bottlenecks.

Duggal favoured meeting the requirements of domestic producers on a priority basis.