Goa CM proposes differential export duty for iron ore

Low-grade iron ore producing state Goa today proposed differential export duty for the key steel making input considering that it is not significantly used in the country.
Discussing the mining scenario in the state, where the activity was banned for almost 19 months before reopening in April this year, Goa chief Minister Manohar Parrikar proposed the idea to Union Steel and Mines Minister Narendra Singh Tomar.
"In place of existing uniform export duty regime, Parrikar proposed differential export duties for iron ore, that is, higher rates for higher grades of ore and lower rates for corresponding grades, considering that the latter was not of significant use to domestic industry," an official statement said.

Tomar acknowledged his views on the subject, it added.
Fines and lumps attract 30 per cent export duty despite the fact that low-grade iron ore fetches less price compared to lumps which has more iron content.
In the absence of suitable required technology, Indian steel makers generally use lumps and fines are destined mostly for exports.
Goa generally produces low-grade ores. The imposition of 30 per cent duty on ore has taken away an important source of revenue for the state government.