Steel Min not in favour of lowering iron ore export duty

The steel ministry is not in favour of slashing export duty of 30 per cent on high grade iron ore, a key ingredient in steel making, a top government official said today.
"We are not in favour of reducing the export duty on higher grade of iron ore from 30 per cent," Steel Secretary Aruna Sharma told reporters on the sidelines of an event organised by the Indian Chamber of Commerce here.
The mining industry has been pushing for a reduction in export of iron ore with Fe content of over 58 per cent, saying there is already a huge stock of unsold ore lying in Odisha and Chhattisgarh with no domestic buyers.

Reducing the export duty will make iron ore viable to sell in the international market. Industry estimates that around 85 million tonnes of the ore is lying unsold.
On the other hand, domestic steel producers are pitching against the reduction in export duty, calling for preserving the natural resource for domestic use.
In the budget 2016-17, the government removed the export duty on low grade iron ore fines and lumps (Fe content below 58 per cent) in a bid to make the domestic mining sector, particularly in Goa, competitive amid a fall in prices globally.

Earlier in her address at the event, Sharma said the government aims to reach steel production mark of 150 million tonnes (mt) by 2020 and 300 mt by 2030.

She suggested that the industry should focus on setting up slurry pipelines to transport iron ore and other raw materials to save transport and freight costs.
On increasing steel consumption, the secretary cited the example of Chhattisgarh, saying the state will use more steel in infrastructure projects.
The steel minister also informed the members of the
council that the ministry has for the first time gone in for crowd sourcing of ideas by inviting public suggestions for the National Steel Policy (NSP), 2017.
The Minister stressed on the need to focus more on research and development so that India can develop indigenous capability to produce better and more value-added steel.

He said that domestic steel makers must explore prospects of developing indigenous capability for producing Value Added Steel like CRGO steel and auto-grade steels that are imported into the country.
Stressing on the need to improve the quality of domestic steel, he said the producers must match global standards in quality and then only can they compete with global markets.
On the future of Indian steel, Singh said that use of low grade raw materials for production of good quality steel in the most economic way will be the future.
Greater emphasis on beneficiation and alternate routes of steel production will have to be explored for being able to use low grade raw materials which are available in abundance.

He said that there is need to set up scrap-based steel production units, as making steel from scrap is not only cost-effective but also eco-friendly.
Expressing confidence on the development path of Indian economy, he said, "The country will need more steel to fuel economic development. The steel makers should be ready to meet the demand and also come out with best in class steel which can be used in varied segments.