The Union Mines Ministry has expressed its reservation over the Finance Ministry’s decision to increase the export duty on low-grade iron ore in the country.
“The Mines Ministry is not favourably inclined towards increase in the export duty,” Mr A.K. Srivastava, Additional Secretary, Ministry of Mines, told reporters here today on the sidelines of a two-day long conference on ‘Mining for Sustainability’ organised by the Federation of Indian Mineral Industries (FIMI).
He said the Ministry has already written to the Government about their views, which might be considered during the Union Budget.
“There is always a budget. The final call on the hike would be taken during budget,” Mr Srivastava said adding that there is always a possibility that the Central Government might revisit it during the presentation of budget.
The export duty was hiked from 20 per cent to 30 per cent from December 30, 2010 onwards by the Finance Ministry to channelise the iron ore to Indian steel industries.
Low-grade ores
Mr Srivastava said at least low-grade ores, which are not consumed by the steel industry, should be spared from the hike.
“If export duty is increased on high-grade, the low-grade ore should be allowed to continue with the earlier duty,” he said.
The mines industry in Goa had expressed their worries over the increased hike, which according to them, would spell doom on their already troubled trade.
The Goa Mineral Ore Exporters’ Association (GMOEA) and the Goa Chamber of Commerce and industry (GCCI) had made a representation to the Goa Government seeking its intervention to roll back the excise duty.
The State Chief Minister, Mr Digambar Kamat, had said that the Union Government would be approached with the pleas made by mining industry.