Steel ministry seeks higher export duty on iron ore

The ministry of steel on Thursday said it has written to the finance ministry seeking an increase in an export duty on iron ore from 20% to 30% to conserve mineral resources for the steel sector.

The ministry of steel on Thursday said it has written to the finance ministry seeking an increase in an export duty on iron ore from 20% to 30% to conserve mineral resources for the steel sector.

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"We have written to the finance ministry to increase the export duty as it is neceassary to conserve our mineral resources," said Beni Prasad Verma, steel minister. "We have sought an increase in duty on both fines and lumps. So far we have not received a response from the finance ministry."

Verma also said that the ministry is formulating a new steel policy and will look at a comprehensive policy framework for all issues related to the sector. The policy will be ready by the end of this year.

"There are 4 sub-groups working on various aspects of the industry," said PK Misra, secretary, steel ministry. "They will submit their reports by the middle of the next month after which work will start on the formulating the final policy. The need for a new policy was felt as the old policy estimated a demand growth of 7.0% during the last decade while, the actual growth was higher at around 9.5%. The new policy would take a broader and updated view."