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FIMI seeks duty rationalization in exports of iron ore

The iron ore industry, which has been hit by the Supreme Court clampdown to check rampant illegal mining, hopes to get some respite in the form of duty rationalisation in exports along with freight charges in the upcoming Budget, industry players have said.

The Federation of Indian Mineral Industries' Southern Region chairman, Mr Basant Poddar told PTI that “We hope the Government will reduce export levy on iron ore fines to push exports. Also, some kind of duty rationalization should be done in rail freight charges to give a boost to this industry.”

At present, while railway freight charges for domestic iron ore movement stand at around INR 900 per tonne, it is around INR 2,800 for exports. Mr Poddar said that “As there is a large discrepancy in the charges, we want them to be rationalized in the upcoming Budget (Railway and General).”

He said the levy on iron ore fines should be reduced to encourage exports.

Another official from a Karnataka based mining firm echoed similar views. The official said that “In FY’12, exports of iron ore have already been down significantly. As per our estimates, it will be down by around 55% in the current fiscal.”