Forging ind for transparency in iron ore exports

The Association of Indian Forging Industry (AIFI) is demanding transparency in iron ore distribution procedures to create more value addition, according to Baba Kalyani, association former president, and chairman and managing director of the country’s largest manufacturer and exporter of automotive components, Bharat Forge Limited.

“We find pleasure in exporting our precious iron ore to China rather than converting it into steel. This is where you need a policy perspective where we need transparency,” Kalyani said on the sidelines of the 20th International Forging Congress that began here on Monday.

Kalyani said India had a policy that encouraged exports of iron and discouraged steel-making. For instance, China has imposed a 40 per cent export duty on cooking coal because they do not want cooking coal to be exported out of the country, he added.

Replying to query, he said he was not demanding any policy on steel pricing, but was in favour of creation of a policy for national interest. The Indian forging industry is expected to grow exponentially as the automobile industry is set to triple the output to 10 million vehicles a year in the next 8 to 10 years, he said.

Industry to see 20% growth a year
The Rs 15,000-crore Indian forging industry is set to witness a year-on-year growth of over 20 per cent besides attracting investments to the tune of $3 million by 2015 for capacity expansion, the industry body said.

The total production of forgings in the country, which was 1.8 million tonne in 2009-2010, increased to 2.3 million tonne during the year ended March 2011, and is expected to touch 4 million tonne by 2014, said Deven Joshi, president of AIFI.