The iron ore industry, which has been hit by the Supreme Court clampdown to check rampant illegal mining, hopes to get some respite in the form of duty rationalisation in exports along with freight charges in the upcoming Union Budget, industry players have said.
'We hope the government will reduce export levy on iron ore fines to push exports. Also, some kind of duty rationalisation should be done in rail freight charges to give a boost to this industry,' Federation of Indian Mineral Industries ( FIMI) Southern Region Chairman Basant Poddar said from Bangalore.
At present, while Railway freight charge for domestic iron ore movement stands at around Rs900 per tonne, it is around Rs2,800 for commodities meant for exports.
'As there is a large discrepancy in the charges, we want them to be rationalised in the upcoming budgets (Railway and general),' Mr Poddar said.
He said levy on iron ore fines should be reduced to encourage exports.
Another official from a Karnataka-based mining firm echoed similar views. 'In FY'12, exports of iron ore have already been down significantly. As per our estimates, it will be down by around 55% in the current fiscal,' said the official, who did not want to be named.
India produces around 200 million tonnes of iron ore per year, 60-65% of which are exported, mostly to China. In FY11, exports stood at 110 million tonne.
Most of the iron ore exported from the country are lower-grade fines, which are mainly produced from Goa, Odisha, and Karnataka, among others.
Referring to the illegal mining and subsequent closure of mines in major producing states, the official said while illegal mining should be curbed, the sector as a whole should not suffer due to activities of a few players.
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'We hope the government will reduce export levy on iron ore fines to push exports. Also, some kind of duty rationalisation should be done in rail freight charges to give a boost to this industry,' Federation of Indian Mineral Industries ( FIMI) Southern Region Chairman Basant Poddar said from Bangalore.
At present, while Railway freight charge for domestic iron ore movement stands at around Rs900 per tonne, it is around Rs2,800 for commodities meant for exports.
'As there is a large discrepancy in the charges, we want them to be rationalised in the upcoming budgets (Railway and general),' Mr Poddar said.
He said levy on iron ore fines should be reduced to encourage exports.
Another official from a Karnataka-based mining firm echoed similar views. 'In FY'12, exports of iron ore have already been down significantly. As per our estimates, it will be down by around 55% in the current fiscal,' said the official, who did not want to be named.
India produces around 200 million tonnes of iron ore per year, 60-65% of which are exported, mostly to China. In FY11, exports stood at 110 million tonne.
Most of the iron ore exported from the country are lower-grade fines, which are mainly produced from Goa, Odisha, and Karnataka, among others.
Referring to the illegal mining and subsequent closure of mines in major producing states, the official said while illegal mining should be curbed, the sector as a whole should not suffer due to activities of a few players.
....more info