Centre Not For Banning Iron Ore Exports (19-Aug-2010)
Indian government had made clear that it does not intend to ban the export of iron ore completely, either to curb the menace of illegal mining or with a purpose of raising availability for domestic steel industry. However, it might raise export duty to curb the level iron exports from the country.
To curb the illegal mining the government has already set a Commission of Inquiry that will look into various aspects of the industry and suggest appropriate remedies. The Commission, which would present its report within 18 months, would identify persons or firms responsible and ascertain if there had been any tampering of official records relating to land and boundaries. However, the mandate of the commission does not include recommending an outright ban on exports.
Mines ministry has strongly opposed the proposal of banning iron ore exports saying it would harm the development of mining industry in the country and would also lead to slump in local iron ore prices. In the medium run, a ban would only lead to decline in both the level of production as well as degree of technological knowhow in the field.
Replying to supplementaries in the Rajya Sabha, Mines Minister B.K. Handique had recently said that export of iron ore was necessary as piling up of the ore might cause environmental hazards. 'It is necessary to export iron ore, we lack the technical knowledge to use all of it,' Handique said. Out of a total annual production of 218 million tonnes, 117 million tonnes of iron ore are exported, he had stated.
Steel ministry however continues to press for higher export duty in case a ban was not favoured by the government. State minister for Steel A Sai Prathap said on Thursday that iron ore exports should be discouraged with appropriate export duty, without specifying the level of such duty in a written reply in the upper house of Indian Parliament. India is world’s third-largest iron ore exporter and has already raised duty on iron ore lumps to 15% from 10% in April and levied 5% tax on iron ore fines last December.
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