Industry happy over iron ore export duty hike

February 28th, 2011 - 7:32 pm ICT by IANS  

Pranab Mukherjee Kolkata, Feb 28 (IANS) Finance minister Pranab Mukherjee’s proposal to enhance export duty for all types of iron ore got the thumbs up from the industry, but export duty exemption for iron pellets was greeted with concern.Mukherjee Monday announced the enhanced rate of export duty for all types of iron ore at a unified 20 percent in his federal budget speech in parliament.

Shyam Sundar Beriwal, the chairman of the Rs.1,000 crore Shyam Steel, hailed the finance minister’s announcement to enhance export duty on iron ore.

“It will benefit the country’s steel industry when the sector is facing raw material crisis. It is a good announcement,” he said.

He, however, said full exemption of export duty on iron ore pellets was not a welcome move.

“Iron ore mine owners already have monopoly. The proposal of exempting iron ore pellets from excise duty will have an adverse effect on domestic iron industry as it will further rise raw material crisis,” Beriwal said.

Merchant’s Chamber of Commerce Iron and Still Committee chairman Santosh Bajaj said: “It is a very good step to increase the rate of export duty for all types of iron ore. It was our long standing demand. Export of iron ore cannot be banned completely. The steel industry was suggesting hike in export duty on iron ore. So the move is in the interest of the steel industry.

“Availability of raw materials like iron ore is beneficial for the domestic market. It is a welcome move,” he added.

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