TEAM HERALD
NEW DELHI: A parliamentary standing committee on coal and steel has recommended either a complete ban on iron ore exports or hiking the export duty high enough to minimise outflow of the precious raw material.
It expressed “anguish” more than one-third (36.9 per cent) of the total iron ore produced in the country was exported during 2011-12. Despite the Planning Commission warning that the iron ore reserves in the country may not be sufficient to meet the domestic steel industry’s demand beyond 25 years, an export of 486 million tonnes of the raw material worth Rs 1.85 lakh crore during the 11th Plan is baffling, the panel said.
In its tabled report in Parliament last week, the panel headed by Trinamool member of Parliament Kalyan Banerjee disapproved the iron ore export policy of the government and noted that even imposition of higher export duty was no solution for the long-term conservation of the ore required by steel industries in the country. It also disapproved the decision to reduce export duty on pallets to zero.
It said imposition of higher export duty on iron ore fines and non-exemption of pellets from export duty will give an impetus to set up pelletisation plants in the country by stand-alone miners. “Setting up of more pelletisation plants will also generate employment opportunities and will also generate more revenue in terms of value added products.”
The panel also called for funding to expand and explore new iron ore mines and introduce state-of-art technology and scientific approach in existing mines to enhance production.
