NEW DELHI, Sept 21: The steel ministry is not in favour of slashing export duty of 30 per cent on high grade iron ore, a key ingredient in steel making, a top government official said today.
“We are not in favour of reducing the export duty on higher grade of iron ore from 30 per cent,” Steel Secretary Aruna Sharma told reporters on the sidelines of an event organised by the Indian Chamber of Commerce here.
The mining industry has been pushing for a reduction in export of iron ore with Fe content of over 58 per cent, saying there is already a huge stock of unsold ore lying in Odisha and Chhattisgarh with no domestic buyers.
Reducing the export duty will make iron ore viable to sell in the international market. Industry estimates that around 85 million tonnes of the ore is lying unsold.
On the other hand, domestic steel producers are pitching against the reduction in export duty, calling for preserving the natural resource for domestic use.
In the budget 2016-17, the government removed the export duty on low grade iron ore fines and lumps (Fe content below 58 per cent) in a bid to make the domestic mining sector, particularly in Goa, competitive amid a fall in prices globally.
Earlier in her address at the event, Sharma said the government aims to reach steel production mark of 150 million tonnes (mt) by 2020 and 300 mt by 2030.
She suggested that the industry should focus on setting up slurry pipelines to transport iron ore and other raw materials to save transport and freight costs.
On increasing steel consumption, the secretary cited the example of Chhattisgarh, saying the state will use more steel in infrastructure projects.
She exhorted the industry to raise awareness among stakeholders to look at ways to enhance consumption of the metal in projects such as bridges and highrises. (PTI)
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