Sunday, 27 Feb 2011, By ET
Steel Minister Mr Beni Prasad Verma called for curbs on exports of iron ore on Friday, as the central government heads into a budget that could raise export duty on the steel making ingredient marginally.
Mr Verma said that "Yes, I am in favor of it. There should be more control on iron ore) exports.”
Mr Vasant Poddar vice president at the Federation of Indian Mineral Industries said that "There could be a marginal hike in export duty of iron ore. These curbs on iron ore exports are not warranted as nobody in the world, be it Europe, Japan, South Korea and US consumes our low grade iron ore, other than China.”
Government is unlikely to approve a blanket export ban as it would prefer better regulation and incentives for increased domestic use of the steel making resource, as demand in the world's second fastest growing major economy rises.
In April last year, government raised the export duty on iron ore lumps to 15% from 10% previously. Duty on iron ore fines stood at 5%.
The ministry of railways hiked the transportation cost 50% to INR 1,500 per tonne on January 27, but kept it unchanged in Friday's Railway Budget.
Tags :raw material, steel mills, steelmaking, Federation of Indian Mineral Industries
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