Thursday, 17 Nov 2011
BS reported that Odisha has again sought an immediate ban on exports of the mineral ore, saying such a move would bring down prices of ore and help regulate mining activities.
The state chief minister Mr Naveen Patnaik has reiterated his demand for ban on iron ore exports, seeking intervention of prime minister Dr Manmohan Singh on the matter.
Mr Patnaik said in his letter to the PM that “The boom in iron ore prices in the last decade has created perverse incentives for mining activities to be carried out in an unregulated manner. A ban on the export of iron ore should be immediately imposed. This will not only bring down domestic prices of iron ore but also encourage local industries to invest in technologies to utilize the iron ore prices presently being exported, besides ensuring that mining activities are regulated and sustainable.”
He said “The ban on iron ore exports is necessary as the demand for steel and its production in the country are both expected to grow at an annual rate of 10% or more on an average in the coming years.”
Mr Patnaik had earlier urged the Prime Minister to announce a ban on iron ore exports and had also raised this demand at the meeting of the National Development Council held on October 22.
(Sourced from BS)
BS reported that Odisha has again sought an immediate ban on exports of the mineral ore, saying such a move would bring down prices of ore and help regulate mining activities.
The state chief minister Mr Naveen Patnaik has reiterated his demand for ban on iron ore exports, seeking intervention of prime minister Dr Manmohan Singh on the matter.
Mr Patnaik said in his letter to the PM that “The boom in iron ore prices in the last decade has created perverse incentives for mining activities to be carried out in an unregulated manner. A ban on the export of iron ore should be immediately imposed. This will not only bring down domestic prices of iron ore but also encourage local industries to invest in technologies to utilize the iron ore prices presently being exported, besides ensuring that mining activities are regulated and sustainable.”
He said “The ban on iron ore exports is necessary as the demand for steel and its production in the country are both expected to grow at an annual rate of 10% or more on an average in the coming years.”
Mr Patnaik had earlier urged the Prime Minister to announce a ban on iron ore exports and had also raised this demand at the meeting of the National Development Council held on October 22.
(Sourced from BS)
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1 comment:
Iron ore exports have reduced from 117.37 MT in 2009-10 to 95 mill tons on 10-11 and are expected to plunge to 70 mill tons in 11-12? Why is the CM so interested in provided ore at low prices to private steel producers when the steel producers price steel at international prices to domestic consumers. All this by killing the domestic iron ore producers who have developed a vibrant export iron ore market, earning billions in foreign exchange for the country, of which a very high percentage of 50-70% already reverts to the Govt. by way of taxes and payment to PSUs like Indian Railways and ports. The CM needs to take a course in free-market economics and consider the interests of the country as a whole rather than only the steel lobby. If steel makers cannot profitably produce steel by buying ore at international prices along with coal which they import, the country is better off by exporting ore and importing steel. The growth of steel industry in India is always grossly overinflated by steel lobbyists from 2005, the estimate of 120 mill tons of steel production in India by 2020 was suddenly advanced to 2010-11 and even inflated to 200 mill tons. With 2010-11 having come and gone and steel production increased marginally from 55 mill tons to 70 mill tons, now the steel lobby is talking abt 120 mill tons by 2015-16 (steel ministry paper) and even 206 mill tons by 2015-16 (steel producers body, also now being quoted by steel minister at their behest). Govt. is losing Rs.6000 crores a year by pricing ore from NMDC at export parity less export duty of 20% less railway frt for exports (which is 6 times that for domestic use). This could be a huge scam perpetuated by the steel ministry and some private steel producers.
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