Friday, 06 Jan 2012
Times of India reported that miner as well as the Goa Chamber of Commerce and Industry have taken strong objection to the iron ore export duty hike to 30% from 20% effective from December 30.
As per report, both Goa Mineral Ore Exporter's Association Goa Chamber of Commerce and Industry have written to the finance ministry Mr Pranab Mukherjee to roll back the hike for low grade ore from Goa.
Mr Manguirish Pai Raikar president wrote that "Though the ministry has not given any rationale behind the hike, we believe it is prompted by the major domestic steel producers and is intended to make export of iron ore less competitive so that ore can be made available for encouraging domestic production of steel. A hike on ore with Fe content over 58% may be justified as such ore is used by the domestic steel and sponge iron industries.”
Mr Raikar in the letter, forwarded as a press note, elaborated that domestic steel manufacturers use iron ore lumps, while Goa produces low grade ore consisting mostly of fines. The latter ore, including fines, cannot be pelletised and hence are not suitable for steel making.
Mr Raikar added that "At the moment, only China has the technology to enable use of these materials which are unwanted in India; and until such time as the technology comes to India, this export should really be incentivized and not taxed.”
He held that if Goan ore is not exported and thus converted to foreign exchange after undergoing the process of generating employment and tax revenues, and is not consumed in India, it ceases to become a strategic natural resource and loses all economic relevance. Mr Raikar stated that "The low grade ore generated in the course of mining will then have to be treated as waste, raising environmental concerns in a tourist paradise.”
He further held that the low grade ore which competes for the Chinese market against ores from Australia, Madagscar, etc and is sold in the spot market may see clients opt for other players as Goa's pricing may be higher. This is especially since this is the second major export duty hike in this fiscal. Mr Raikar further stated that "This will make it difficult for us to negotiate long term sale arrangements so that mining investments, which are all long term in nature, cannot be planned properly.”
Mr Raikar concluded by pointing out that in the absence of any alternative use for low grade Goan ore, ore from Goa and Redi (southern Maharashtra) were treated separately in the export policy during earlier years and Goa should continue to be treated so.
Mr Glean Kalavampara secretary of GMOEA pointed out that no low grade ore is used by the domestic steel industry and even existing pig iron plants in Goa draw iron ore from Karnataka and elsewhere. He told TOI that "Logistically speaking, it is not practical or cost effective to transport ore from Goa to Orissa and other states where steel plants exist as there already exists surplus ore in those states.”
GMOEA too fears that Goa will lose out to Australia and Brazil who could easily increase their ore outputs and wipe Goa out.
(Sourced from TOI)
Showing posts with label export tax of iron ore. Show all posts
Showing posts with label export tax of iron ore. Show all posts
Friday, January 6, 2012
Wednesday, October 5, 2011
Indian Steel minister calls for immediate hike in export tax
Wednesday, 05 Oct 2011
Press Trust Of India reported that concerned over severe shortage of iron ore after the ban on mining in Karnataka, Indian union steel minister Mr Beni Prasad Verma said that the finance ministry should immediately increase export duty on the raw material to 30%.
He said “If exports of iron ore stop, the problem of iron ore shortage in Karnataka and other states would get solved, by and large.”
He added that “We want to get this implemented immediately. I had written to them just at the beginning of the Karnataka crisis.”
Mr Verma had written a letter to finance minister Mr Pranab Mukherjee two weeks ago to increase the duty by 10% to 30%, to discourage exports.
(Sourced from PTI)
Press Trust Of India reported that concerned over severe shortage of iron ore after the ban on mining in Karnataka, Indian union steel minister Mr Beni Prasad Verma said that the finance ministry should immediately increase export duty on the raw material to 30%.
He said “If exports of iron ore stop, the problem of iron ore shortage in Karnataka and other states would get solved, by and large.”
He added that “We want to get this implemented immediately. I had written to them just at the beginning of the Karnataka crisis.”
Mr Verma had written a letter to finance minister Mr Pranab Mukherjee two weeks ago to increase the duty by 10% to 30%, to discourage exports.
(Sourced from PTI)
Wednesday, March 23, 2011
India's iron ore exports seen less than 100 mln T-Sesa Goa
Wed Mar 23, 2011 6:13am GMT
* Spot iron ore prices have fallen 14 pct from mid-Feb
* Slower China, Japan demand weighing on prices
BEIJING, March 23 (Reuters) - Iron ore exports from India, the world's third-largest supplier of the steelmaking material, will be less than 100 million tonnes in the next fiscal year starting April if prices stay at current levels, a top executive at Sesa Goa said on Wednesday.
India usually exports about half of its annual iron ore output of around 200 million tonnes, most of them going to China.
"Iron ore exports from India will be less than 100 million tonnes if prices stay at current levels," P.K. Mukherjee, managing director of top Indian iron ore exporter Sesa Goa, told reporters at an industry conference.
Spot iron ore prices .IO62-CNI=SI have fallen 14 percent since hitting record highs in mid-February as thin steel demand in top consumer China slowed buying by Chinese steel mills.
Worries that demand from disaster-hit Japan may also slow in the near term before a reconstruction-led rebound has also weighed on iron ore prices.
Iron ore prices surged more than 40 percent in 2010 on booming demand from China, prodding global producers in Brazil and Australia to boost output.
But India's iron ore exports fell for a seventh straight month in January because of a ban on shipments from its key Karnataka state and exports are seen falling further due to a four-fold rise in export tax.
India's iron ore exports are likely to fall 35 percent to about 58 million tonnes in the next fiscal year due to the curbs and the increase in taxes, R.K. Sharma, secretary-general of the Federation of Indian Mineral Industries, said earlier this month.
* Slower China, Japan demand weighing on prices
BEIJING, March 23 (Reuters) - Iron ore exports from India, the world's third-largest supplier of the steelmaking material, will be less than 100 million tonnes in the next fiscal year starting April if prices stay at current levels, a top executive at Sesa Goa said on Wednesday.
India usually exports about half of its annual iron ore output of around 200 million tonnes, most of them going to China.
"Iron ore exports from India will be less than 100 million tonnes if prices stay at current levels," P.K. Mukherjee, managing director of top Indian iron ore exporter Sesa Goa, told reporters at an industry conference.
Spot iron ore prices .IO62-CNI=SI have fallen 14 percent since hitting record highs in mid-February as thin steel demand in top consumer China slowed buying by Chinese steel mills.
Worries that demand from disaster-hit Japan may also slow in the near term before a reconstruction-led rebound has also weighed on iron ore prices.
Iron ore prices surged more than 40 percent in 2010 on booming demand from China, prodding global producers in Brazil and Australia to boost output.
But India's iron ore exports fell for a seventh straight month in January because of a ban on shipments from its key Karnataka state and exports are seen falling further due to a four-fold rise in export tax.
India's iron ore exports are likely to fall 35 percent to about 58 million tonnes in the next fiscal year due to the curbs and the increase in taxes, R.K. Sharma, secretary-general of the Federation of Indian Mineral Industries, said earlier this month.
Friday, February 18, 2011
Budget update - Steel industry wants infrastructure status higher import duty and export tax of iron ore
Friday, 18 Feb 2011
The domestic steel industry, which raised prices in wake of some stimulus measures being withdrawn after the last budget, has warned of another price hike if stimulus is completely withdrawn in Budget 2011-12. An industry official said that “We will have no option but to pass on the burden to the consumers if excise duty concessions are withdrawn.”
1. Infrastructure status to the steel industry
The steel industry has also reiterated its long standing demand of being accorded infrastructure status. Steel firms have asked the finance ministry to grant infrastructure status to the steel industry. Such a move by the finance ministry would ensure long term funds and tax holidays for the steel industry.
A SAIL spokesperson told Business Line that “SAIL has submitted its demands and expectations from Budget 2011-12 to the finance ministry. The crux of it is that we want steel to be given infrastructure status. This would help in securing long term funds for the expansions taking place in the domestic steel industry.”
2. Hike import duty on HR coils
For the growth of industry, steel makers along with Associated Chambers of Commerce and Industry has called on the finance ministry to raise import duty on HR coils to 10% from the current 5%. ASSOCHAM in a statement said that “Pro active policy measures adopted by government of India can help extend HR coil capacity by an additional 8 million tonnes during 2011-12, making India surplus for HR coils by more than 6 million tones.”
3. Export tax on iron ore
Steelmakers have also asked the Finance Ministry to increase the export duty on iron ore. A Jindal Steel and Power Ltd spokesperson said that “Recent hikes in steel prices have been mainly driven by the increasing commodity prices. To contain this, the Government should consider increasing the export duty on iron ore.”
The government had last year raised export duty on iron ore lumps to 15%. The industry expects at least a 5% increase on the export of iron ore lumps, but it wants duty to be increased on iron ore fines as well.
An industry official that “It is time we start conserving iron ore fines as technology is coming up which will also make domestic steelmakers to use iron ore fines increasingly.”
(Sourced from BL)
Tags:Budget update, Indian steel industry, infrastructure status, higher import duty, export tax of iron ore, steelmakers, raw material, Indian government
The domestic steel industry, which raised prices in wake of some stimulus measures being withdrawn after the last budget, has warned of another price hike if stimulus is completely withdrawn in Budget 2011-12. An industry official said that “We will have no option but to pass on the burden to the consumers if excise duty concessions are withdrawn.”
1. Infrastructure status to the steel industry
The steel industry has also reiterated its long standing demand of being accorded infrastructure status. Steel firms have asked the finance ministry to grant infrastructure status to the steel industry. Such a move by the finance ministry would ensure long term funds and tax holidays for the steel industry.
A SAIL spokesperson told Business Line that “SAIL has submitted its demands and expectations from Budget 2011-12 to the finance ministry. The crux of it is that we want steel to be given infrastructure status. This would help in securing long term funds for the expansions taking place in the domestic steel industry.”
2. Hike import duty on HR coils
For the growth of industry, steel makers along with Associated Chambers of Commerce and Industry has called on the finance ministry to raise import duty on HR coils to 10% from the current 5%. ASSOCHAM in a statement said that “Pro active policy measures adopted by government of India can help extend HR coil capacity by an additional 8 million tonnes during 2011-12, making India surplus for HR coils by more than 6 million tones.”
3. Export tax on iron ore
Steelmakers have also asked the Finance Ministry to increase the export duty on iron ore. A Jindal Steel and Power Ltd spokesperson said that “Recent hikes in steel prices have been mainly driven by the increasing commodity prices. To contain this, the Government should consider increasing the export duty on iron ore.”
The government had last year raised export duty on iron ore lumps to 15%. The industry expects at least a 5% increase on the export of iron ore lumps, but it wants duty to be increased on iron ore fines as well.
An industry official that “It is time we start conserving iron ore fines as technology is coming up which will also make domestic steelmakers to use iron ore fines increasingly.”
(Sourced from BL)
Tags:Budget update, Indian steel industry, infrastructure status, higher import duty, export tax of iron ore, steelmakers, raw material, Indian government
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