Karnataka - Belgaum   

‘High duty on iron ore exports means trouble for industry’

Staff Correspondent

Belgaum: The Belgaum Chamber of Commerce and Industries (BCCI) is of the view that imposing high duty on iron ore exports will not only create troubles for the industry but also harm relations with international market.

According to BCCI president Vikas Kalghatagi here on Friday, the tripartite scuffle going on between iron ore exporters, the government and the steel manufacturers revolved over the issue of imposing of export duty of Rs. 300 per tonne of iron ore.

He quoted Chairman of JSW Steel Ltd. Sajjan Jindal as saying that “the mining industry, with exports of 100 tonnes of iron ore, contributes only about Rs. 290 crore to the exchequer, which would increase after the imposition of export duty of Rs. 300 per tonne, and if the same ore is converted into steel, it would contribute over Rs. 34,800 crore to the fund.”

But the Chinese steel manufacturers had stopped importing ore from India. This had affected the mining sector, including the one in Karnataka which was also a major exporter of iron ore to China.

He said the BCCI was primarily against imposing of any duty on iron ore exports. However, it was not against it if the Government kept the duty at a lower level as a higher duty would adversely affect not just mining operations but also workers engaged in providing logistic support. Trucks have been engaged to transport ore from different mining points for shipment at Goa via Belgaum.

A large number of workers have been engaged in transportation services offered by Belgaum-based operators.

He pointed out that the empowered Group of Ministers (GoM) on mining, on July 6, decided not to put any cap on the export of iron ore, while approving the National Mineral Policy 2007.

But the GoM decided to continue with the differential rate of export duty to discourage export of quality iron ore. The GoM reportedly did not discuss the issue of export duty.

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