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ASSOCHAM warns on roll back of iron ore export duty

Posted on Jan 21, 07:17PM | UNI

ASSOCHAM today cautioned the Union Government against bowing to the renewed demand by a section of mining industry for reviewing export duty structure on iron ore which will severely affect the domestic steel industry.

'India has added huge capacity for agglomeration like pelletlisation and sintering during the course of past few years due to the government decision to adopt fiscal measures to conserve iron ore resources against demand of steel industry to ban iron ore exports,' the trade body said while hailing the government's policy to conserve natural resources by imposing 30 per cent export duty on iron ore and differential railway freight for domestic and export sector.

The structural deficit of iron ore availability for domestic industry is owing to an upper cap in iron ore production together with various environmental concerns, ASSOCHAM said today in a communication to Steel Secretary DRS Chaudhary.

The trade body urged the government to stay vigilant and not repeat the saga of illegal mining caused by unrestrained iron ore exports. Besides, interests of the steel industry should receive government's attention.

India has got about 115 million ton of agglomeration capacity against the production of over 101 MT of fines considering that it produced about 170 MT of iron ore in 2011 including over 66 MT of lumps and over 101 MT of fines.