Saturday 19 April 2014
News updated at 12:33 PM IST
Weather
Max: 35.4°C
Min : 22.5°C
In Bangalore
Sunny day

Ministry seeks 50% cut in iron ore export duty

New Delhi, Feb 16, 2013, PTI

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
Runners, wearing jackets from the 2013 Boston Marathon, add their message to a cloth banner after...

Runners, wearing jackets from the 2013 Boston Marathon, add their message to a cloth banner after...

Yesenia Del Carmen 8, carries a cross reading 'No to the Deportations,' 'as she and her...

Yesenia Del Carmen 8, carries a cross reading 'No to the Deportations,' 'as she and her...

South Sudanese fleeing an attack on the South Sudanese town of Rank, rest during arrival at a...

South Sudanese fleeing an attack on the South Sudanese town of Rank, rest during arrival at a...

A sand sculpture of Simon Zelotes preaching the gospel is seen during Holy Week celebrations in...

A sand sculpture of Simon Zelotes preaching the gospel is seen during Holy Week celebrations in...

Rescue workers operate near floats where the capsized passenger ship 'Sewol' sank, during the...

Rescue workers operate near floats where the capsized passenger ship 'Sewol' sank, during the...

Pilgrims light candles held in orange skins on Good Friday in Tanarandy Mission April 18, 2014...

Pilgrims light candles held in orange skins on Good Friday in Tanarandy Mission April 18, 2014...

Leaked oil is seen on the surface of the sea near the site where the capsized passenger ship...

Leaked oil is seen on the surface of the sea near the site where the capsized passenger ship...

Firefighters stand near the remains of beachfront homes which caught fire in Sea Isle City, New...

Firefighters stand near the remains of beachfront homes which caught fire in Sea Isle City, New...

In this Saturday, Feb. 15, 2014, file photo, Miss America 2014 Nina Davuluri attends the NCAA...

In this Saturday, Feb. 15, 2014, file photo, Miss America 2014 Nina Davuluri attends the NCAA...

Women adjust their outfits as they prepare to take part in a ritual dance during a Gaga ceremony...

Women adjust their outfits as they prepare to take part in a ritual dance during a Gaga ceremony...

Copyright 2014, The Printers (Mysore) Private Ltd., 75, M.G Road, Post Box 5331, Bangalore - 560001
Tel: +91 (80) 25880000 Fax No. +91 (80) 25880523