India's steel ministry is in favour of restricting iron ore exports to China, South Korea and Japan to ensure availability of the raw material to domestic steel companies, a senior official in the government said. Iron ore is a key input in steel making.
Iron ore should be conserved for the domestic consumption, steel minister Virbhadra Singh said. He added that the steel ministry would discuss the issue with the Prime Minister and the finance minister shortly.
"Iron ore exports should be encouraged only in value added form and that too in a limited quantity. The government will ensure that reserves of iron ore are made available to domestic steel makers at reasonable prices," Mr Singh said addressing mediapersons at an event organised by The Economic Times on Thursday.
At present, iron ore lumps attract export tax of 5% while there's no duty on exports of iron ore fines. India produces 200 million tonnes of iron ore every year, of which half is exported. Around 60% of the country's exports are alone to China.
The minister added that the steel and iron ore prices are favourable and that there’s no rationale for companies to increase prices.
The steel ministry has also formed a committee, which will look into restructuring and revival of companies such as Hindustan Steel Construction and Kudremukh Iron Ore Company.
SourcE: Economic Times
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