Press Esc to close

Ministry seeks 50% cut in iron ore export duty

New Delhi, Feb 16, 2013, PTI 21:35 IST

Ministry seeks 50% cut in iron ore export duty

Ahead of the Budget, Mines Ministry has sought from the Finance Ministry reduction of export duty on low grade iron ore by 50 per cent to boost production to enhance export of the mineral.

"We have sought reduction in the duty on fines to 15 per cent from the Finance Ministry. Now they have to decide it. Presently there is a uniform duty of 30 per cent on both, iron ore lumps and fines," Mines Minister Dinsha Patel said here.
Shipment of Fines, having low iron content and constituting around 92 per cent of the total iron ore exports, were at 60 million tonnes (MT)in 2011-12, data compiled by mining industry body, FIMI, showed. This is in contrast to about 120 MT exports achieved in 2009-10.

Between April-November, 2012, total iron ore exports were at 15 MT, down over 62 per cent compared to the same period of previous year, the FIMI data says.

According to the industrial production (IIP) data, mining sector has shown a negative growth of 2.6 per cent in the first nine months of the current fiscal and has widened from the previous year's level of (-)1.9 per cent.

In December, 2012 itself, mining sector had a negative growth of 3.3 per cent. Iron ore, a key raw material for steel production, is one of the major components in the mining index of IIP data.

When asked about the demand of domestic steel industry for a complete ban on iron ore exports, Patel said, "Whatever is domestic demand should be made available, there should not be any shortage but lower grade iron ore, which cannot be utilised here, what do we do with them if we don't export."

"Whoever is saying that iron ore is not available (for the domestic steel industry) is not correct. I am not willing to accept it,", the Minister said.

He said that in 2010-11, Indian iron ore production was about 210 million tonnes (MT), whereas steel industry's total production was 65-70 MT. So their requirement was not more than 110 MT during that period, he added.

"Last year, even after excluding Karnataka, iron ore production was at 167 MT. By 2020, they (steel industry) are talking about 100 MT steel production capacity but even then, iron ore requirement will not be more than 160 MT as 1.6 MT iron ore is required for 1 MT steel production," Patel said.

Go to Top

Photo Gallery
Indian Air force paratroopers perform maneuvers at Bamhrauli Air station as the Indian Air Force ...

Indian Air force paratroopers perform maneuvers at Bamhrauli Air station as the Indian Air Force ...

Indian Mens Hockey team celebrates their birth in the final of the Hero Asia Cup 2017 with a...

Indian Mens Hockey team celebrates their birth in the final of the Hero Asia Cup 2017 with a...

Prime Minister Narendra Modi on the maiden voyage of Ro-Ro Ferry Service between Ghogha and Dahej...

Prime Minister Narendra Modi on the maiden voyage of Ro-Ro Ferry Service between Ghogha and Dahej...

India's Kuldeep Yadav celebrates the wicket of New Zealand batsman Kane Williamson during the...

India's Kuldeep Yadav celebrates the wicket of New Zealand batsman Kane Williamson during the...

External Affairs Minister Sushma Swaraj with Bangladesh Prime Minister Sheikh Hasina at a ...

External Affairs Minister Sushma Swaraj with Bangladesh Prime Minister Sheikh Hasina at a ...

Spain's Garbine Muguruza in action during her group stage match against Latvia's Jelena Ostapenko...

Spain's Garbine Muguruza in action during her group stage match against Latvia's Jelena Ostapenko...

Meng Meng, one of the two giant Chinese panda bears, is seen at the Zoo in Berlin, Germany July 5...

Meng Meng, one of the two giant Chinese panda bears, is seen at the Zoo in Berlin, Germany July 5...

Father Nicolas Maine blesses bikers' helmets during a

Father Nicolas Maine blesses bikers' helmets during a "Blessing of the Bikes" ceremony at Saint...

Arsenal's Sead Kolasinac in action with Everton's Nikola Vlasic during Premier League match at ...

Arsenal's Sead Kolasinac in action with Everton's Nikola Vlasic during Premier League match at ...

A volunteer uses a water hose to fight a wildfire near houses on the outskirts of Obidos...

A volunteer uses a water hose to fight a wildfire near houses on the outskirts of Obidos...

Like us on Facebook

Copyright 2017, The Printers (Mysore) Private Ltd., 75, M.G Road, Post Box 5331, Bengaluru - 560001
Tel: +91 (80) 25880000 Fax No. +91 (80) 25880523
Powered by Yodasoft Technologies Pvt. Ltd.