Steelmakers Lobbying For Removal Of 2.5% Import Duty On Iron Ore.

Top domestic steelmakers have begun lobbying with the government for an effective raw material policy, including removal of 2.5% import duty on iron ore, in the face of an ongoing mining crisis.



The move comes even as the Federation of Indian Mineral Industries (FIMI), an apex body of 400 private mining firms, has urged the union commerce ministry to withdraw 30% export duty on iron ore.



With Modi government initiating deliberations with various industry bodies ahead of its first budget, key stakeholders in the steel industry seem to be presenting completely divergent demands.



"The industry is operating at 80% capacity utilisation due to constraints in mining. This is also leading to higher domestic prices of iron ore. We should take adequate steps to ensure availability of iron ore. In this context, we should restrict exports of iron ore. The latter only leads to creation more jobs in foreign countries, at the expense of jobs and our manufacturing sector. This is a call we need to take as a nation," Jayant Acharya, director (marketing) JSW Steel, India's leading private steelmaker said.



An official of another private steel major said: "In the present situation of iron ore shortage, government should mull the decision of abolishing the import duty on iron ore. Mining companies are taking undue advantage of scarce supply owing to temporary closure of mines in Odisha due to non-renewal of years-old leases. This has resulted in iron ore prices shooting up by Rs 500 per tonne. Even stateowned mining companies have increased the prices. It has a direct impact on steel making costs which has gone up Rs1,000 per tonne."



Source:- economictimes.indiatimes.com