Arguing that India has more than sufficient iron ore resources, industry body CII today said there is a need to reduce export duty on the key steel-making raw material.
Asked whether the current 30 per cent export duty on iron ore should be brought down, pat came the reply from CII's National Committee on Mining Chairman Nik Senapati, "Yes."
"There is enough iron ore in the country to satisfy the need of all steel makers for the foreseeable future. There is enough for the growing steel industry," said Senapati, who also heads mining giant Rio Tinto's India operations.
India's installed steel manufacturing capacity currently stands at about 100 million tonnes and is projected to triple in another 10-15 years. It takes about 1.6 tonnes of iron ore to produce one tonne of steel.
"India is rich in resources. Iron ore resources are defined as what have been explored at the moment. It is by far not explored. One can't guarantee this, but it is most likely that there are more iron ore reserves...much more," he said.
However, the deficiency lies in exploration, he said. India, which was the third-largest iron ore exporter in the world in the not-so-distant past, has lost that status and market share allegedly due to the higher export duty. India's iron ore exports came down to 14.42 million tonnes in 2013-14 from 117.37 million tonnes in 2009-10.
Senapati said the country should prioritise restarting of closed mines in a transparent manner and in compliance with the Supreme Court's directive and it should ensure that the sector gets enough investment.
He also said the country should allow the transfer of a lease from one company to another to ensure profit.
"At the moment, you are not allowed to transfer for profit. If you can't sell for profit, the incentive to invest will be less. Those who are in exploration, they often do not do mining," Senapati said.
Source:- economictimes.indiatimes.com
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