World current prereduction capacity of about 5 million tons is expected to rise to over 60 million tons by end of the decade. The paper briefly reviews the major prereduction processes and outlines uses of products. Attempts is made to define the broad parameters of iron ores used for prereduction. Adoption of prereduction by solid reductant process seems to hold our promise for Indian conditions. Application of prereduction as a means of producing steel directly or as an ancilliary process for stretching capacity of existing and future blast furnaces. Possibility of estabilishing a number of small centers for providing raw materials for founders and rero-lling mills. Recommends experimental industrial appli-cation of prereduction during 5th plan period towards gaining experience for wider application for increasing iron and steel capacity in the 6th and subsequent plans