Mining cos see exports dip by 15%

"We expect a drop in exports by 10-15 per cent," Mineral Enterprises Managing Director Basant Poddar told reporters here. Rail freight for iron ore had gone up nearly 45 per cent in the last two months, which was bound to impact imports.     

In China nearly 90 million tonnes stock of iron imports had piled up and the financial stock charges had increased. With China, being the only the importer of low grade iron ore from India, "we expect a slow down in imports", he said.     

On cancellation of indents, he said with transport by rail becoming expensive than road transport, there has been cancellation of indents. In Vishakapatnam, there had been 80 per cent cancellation of indents, he said.     

About the current problems facing the mining industry, Federation of Indian Mineral Industries' Director (Southern Region) D V Pichamuthu said, delays in processing applications for various mineral concessions  namely reconnaissance permits, prospecting licenses and mining leases  had been one among the most worrisome.    

The long delays in granting these licenses and the various formalities and bureaucratic hurdles faced by the industry was one that needed to be tackled, he said.     

Moreover, the infrastructure to support the mining industry is woefully underdeveloped, Pichamuthu said, adding inadequate rail connectivity and shortage of wagons, has forced many to dispatch ores by road.     

Also, the choking at various ports and the low capacity handling was affecting industry, he said.