New Delhi, January 26 The Directorate General of Foreign Trade (DGFT) has written to the Ministry of Steel seeking their opinion on appointment of NMDC — the country’s largest iron ore miner — as a canalising agency for export of high grade iron ore, manganese ore, chrome ore and other minerals.
In government parlance, canalisation of import and export refers to importing and exporting of commodities through specified government agencies which previously included the State Trading Corporation of India (STC), MMTC and others.
A senior official of the DGFT in a January 3 communication (reviewed by businessline) to another top official of the Ministry of Steel mentioned that the Directorate was awaiting a final comment from the ministry for appointment of NMDC “as an alternate canalising agency”.
The name of NMDC (National Mineral Development Corporation), whcih is under the Ministry of Steel, came up after four other CPSEs were de-notified in September as nominated agencies for EXIM businesses.
“M/O Steel have been requested to provide their comments to take further necessary action to include NMDC as an alternate canalising agency. However, the requisite comments are still awaited,” the communication from the DGFT official reads.
Why NMDC?
Interestingly, the Ministry of Mines had in September 29, 2022 denotified four central public sector enterprises (CPSEs) – MMTC, STCL (The State Trading Corporation of India), PEC (Project and Equipment Corporation) and STC – as canalised or nominated agencies for all businesses in the EXIM policy.
The office memorandum of the Ministry of Mines mentioned that it does not have any CPSU under it which deals with mining of iron ore, manganese ore and chrome ore. And “as such, it is proposed to nominate NMDC as canalising agency....”, the memorandum mentioned adding that the DGFT was “requested” to take up the matter since NMDC was under the purview of a different ministry.
Incidentally, the DGFT had on December 7 sent a similar mail to the Ministry of Steel seeking its comments on appointment of the iro-ore miner as a canalisation agency.