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| Edited By: Neeraj Thakur |Source: DNA |Updated: Mar 30, 2018, 02:58 AM IST
The steel ministry, on Wednesday, hinted that there could be a rise in export duty on iron ore to safeguard the interest of the domestic industry.
There is currently 10% export duty on iron ore lumps and 5% on iron ore fines. Domestic steel manufacturers have been pressing the government to curb iron ore exports by increasing the export duty on the raw material.
According to sources, the steel ministry is going to meet the finance ministry soon to present its case.
“Government has an open mind on definite deterrence on avoidable exports of iron ore through either prohibitive tax measures or quantitative restrictions to raise domestic availability of iron ore for the steel industry,” said steel minister Virbhadra Singh.
But while the steel ministry has been asking the finance ministry to increase the export duty on iron ore, the commerce ministry has been against such move. Last time the government raised export duty on iron ore in December 2009, was when the rise in iron ore export had threatened the interests of the Indian steel manufacturers.
High iron ore and coking coal prices have seen a surge of upto 90% since last year leading to increased input cost for the steel firms, who have passed on the cost to the consumers.
India produces about 225 million tonnes of iron ore annually, but the domestic consumption is only around 87 million tones, leading to a huge surplus of mined iron ore.
However, with both public and private sector companies
expanding production capacity, domestic consumption of iron ore lumps would jump in the next two years and the steel ministry wants to ensure that there will be sufficient stock for domestic companies.
The steel ministry has set a target of 124 mtpa production capacity by 2012-13, more than double the current production capacity of around 54 mtpa.
Meanwhile, the government is also seeking a possible collaboration with Nippon Steel Corp., Japan’s largest steelmaker, for improving technical skills of SAIL employees, Atul Chaturvedi, secretary at steel ministry said.
