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Indian steel ministry calls for hiking export duty on iron ore again

BL reported that Mr Virbhadra Singh Indian steel minister on Wednesday demanded raising of export duty on iron ore in an effort to rein in the spiraling prices and increase domestic availability of the product.

Addressing a conference on "Challenges for Indian steel industry in infrastructure and resources" organised by the Federation of Indian Chambers of Commerce and Industry here, Mr Singh said apart from the option of raising the export duty, quantitative restrictions on exports could be imposed.

He said "The government will have to look at the question of iron ore exports differently by bringing in definite deterrence. This may be in the form of either prohibitive duty or quantitative restrictions"

He said in order to ensure supply of vital inputs for steel like iron ore and coking coal, the Ministry was in close contact with the Ministry of Mines in formulating a new Mining Policy. A new Mining Policy Bill will be presented for Parliamentary approval soon.

At present, iron ore lumps attract an export duty of 15% and iron ore fines a duty of 5%.

(Source: BL)