INDIA - In order to discourage the export of iron ore, steel minister Virbhadra Singh demanded an imposition of export tax at the rate of 20% on the commodity, with immediate effect. As a long term policy, the minister went ahead seeking a ban on export of iron ore, stating that the raw material should be preserved for the use of the domestic industry.
“As far as steel ministry is concerned, we favour placing a ban on export of iron ore,” Singh said. "We should conserve iron ore to meet the present and future requirements of the country rather than repenting later,” he added. Singh further said that as an immediate step towards restricting exports, a "flat 20% duty should be levied on iron ore consignments leaving the country.
At present, export duty on iron ore fines is 5% while it is 15% on lumps. India produced about 230 million tonnes of iron ore in the last fiscal, of which around 106 million tonnes were exported, mainly to China. He said India should dispatch finished goods made of the ore. Steel secretary Atul Chaturvedi said his ministry would give its viewpoint on iron ore exports at an eGoM meet scheduled for July 22.
×
