Financial Express reported that despite the steel ministry's reluctance to reduce export duty on iron ore, Mr Anil Agarwal chairman of Vedanta resources has supported the mining industry's demand to reduce the current 30% duty, stating that India could earn USD 10 billion if the government allows export of iron ore by reducing export duty structures.
Mr Agarwal said that “Oil price hike may lead to forex outflow. Increase in Goa’s iron ore production for export can earn forex up to USD 10 billion. This comes days after mining industry stalwarts made a presentation to steel and mining minister Mr Narendra Singh Tomar.
Mr Nik Senapati MD of Rio Tinto India said that “There is enough iron ore for the growing Indian steel industry. Export duty should be reduced.”
The mining companies believed that the consequence of imposition of 30% export duty and increase in railway freight made iron ore uncompetitive, and Indian exports plummeted as a result. India's iron ore exports came down to 14.42 million tonne in 2013 to 2014 from 117.37 million tonne in 2009 to 2010.
A senior executive from Vedanta said that with the present duty structure, the companies will be incurring a loss of USD 8 to 9 per tonne for iron ore of 55% Fe grade, if they export.
However, the steel ministry wants the finance ministry to continue with the 30% duty on iron ore exports in the upcoming Budget, stating that restrictions on mining of iron ore in Karnataka have led to a steep drop of 35% in its output.
Source:- steelguru.com
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