The steel ministry on Wednesday asked for a hike in duty and quantitative restrictions on the export of iron ore to increase domestic availability of the mineral and contain its shooting price.
??The government will have to look at the question of exports (of iron ore) differently by bringing in definite deterrence. This may be in the form of either prohibitive duty or quantitative restrictions,?? steel minister Virbhadra Singh said during a summit organised by Ficci.
Singh said his ministry is in close parleys with the mines ministry on the formulation of a new mining policy to facilitate supply of vital inputs for steel like iron ore and coking coal. A new Mining Policy Bill will be tabled in Parliament, he said.
The remarks came in the wake of supply bottlenecks in global markets and strong demand from China and India, especially for minerals of Australian origin. Iron ore and coking coal prices have surged as much as 90% compared to the year-ago period, adding to the input cost of steel makers. At present, iron ore lumps attract an export duty of 15% and iron ore fines 5%.
Singh said Indian companies, particularly those in the public sector, had lagged behind in investment in mining assets as ??they possibly woke up later to the harsh reality that supply of coking coal could take such a dimension. It is time for the Indian steel and mining companies, whether in the public or private sector, to look for opportunities overseas more seriously.??
Steel secretary Atul Chaturvedi said land acquisition for steel projects continues to pose a major challenge and asked industry players to consider using the large land mass that is currently available with the closed units. “I have asked the Ministry of Heavy Industry to map out such land masses and put the information on their website for the benefit of prospective investors,” he said.