Even as the steel ministry is aggressively batting for an increase in export duty of iron ore, the commerce and industry ministry is considering a “minor increase” of duty on exports of iron ore lumps only. The export duty on iron ore fines would remain the same. At present, export duty on iron ore lumps is 10 per cent and that on fines is 5 per cent. According to Commerce and Industry Minister Anand Sharma, the issue had been extensively discussed in a meeting between the ministries of steel, finance and commerce and industry. “There is no justifiable case in increasing the export of duty on iron ore. The Indian steel industry does not use iron ore fines and only consumes large quantities of iron ore lumps to produce steel,” he said here today. He added, while “there will be no increase of duty on the export of iron ore fines, export duty on iron ore lumps will be marginally increased.” The minister also said mining activities were undertaken in the poor backward and tribal regions of the country, providing jobs to millions. “So, before taking any decision on increasing export duty, we should take a wholesome view. An Empowered Group of Ministers (EGoM), headed by Finance Minister Pranab Mukherjee, would take a view in this regard,” he said. The steel ministry has already written a letter to Prime Minister Manmohan Singh and Mukherjee, requesting them to impose 20 per cent duty on all grades of iron ore exports to augment its availability in the domestic market for the country’s steel producers, which are planning large-scale expansion in the current financial year. It has also said that the availability of iron ore in the country could also result in stabilising the steel prices.
