The Federation of Indian Mineral Industries (Fimi) has called for immediate removal of export duty being levied on the iron ore industry.

Briefing reporters, Fimi Senior Committee Member Basant Poddar said, export duty of Rs 300 per tonne on all grade of iron ore and fines of more than 62 per cent being currently levied is eroding the competitiveness of the ore industry in India.

Stating that Fimi has already submitted a pre-budget memorandum to the Prime Minister’s Office, Mr Poddar said, the sector has also been badly hit by sharp rise in rupee as also railway and road freight levies besides increase in wages, port charges and handling operations.

Further, with the royalty on iron ore being contemplated to be raised by 10 per cent ad valorem from a maximum of Rs 27 per tonne to around Rs 200 per tonne will only sound the death-knell for the sector.

Pointing out that various bureaucratic bottlenecks in the State were hampering the growth of the sector, Mr Poddar said, this was further compounded by the lack of proper rail, road and port infrastructure. Besides the conversion of rail lines into broad-guage, he said, ports must be modernised with latest mechanical ore handling facilities to help the industry.

New proposal

In this regard, he said, Fimi, on its part, has proposed the development of Tadri Port in the State with an investment of Rs 1,000 crore as public-private initiative. The proposal is before State Governor Rameshwar Thakur awaiting the clearance. The port, once developed, will be able to handle 5 million tonne per annum of iron-ore for exports, he said.

Hampered by various impediments, he said, India iron ore industry’s competitiveness has been sharply dented in recent years resulting in Australia and Brazil being most sought after by China, the major importer of ore fines from India, besides Russia and  South Africa.