ASSOCHAM happy with hike on iron ore exports [Feb 2012]

ASSOCHAM recently welcomed the government’s decision to hike duty on iron ore exports from five to 30 per cent. It is a step in the right direction which will put emphasis on value addition within the country to meet growing demand of steel.
The Associated Chambers of Commerce and Industry of India (ASSOCHAM) stated that Conservation of iron ore is in the national interest as reserves may run out rapidly due to projected growth of the economy.
“We have always advocated a complete ban on iron ore exports. However, discouraging them through fiscal measures is an appropriate solution to utilise large mining, infrastructure and port capacities created for iron ore,” said ASSOCHAM Secretary General DS Rawat.
“It is imperative that India conserves its iron ore resources to safeguard long-term sustainability of the steel industry,” said Mr. Rawat adding the crackdown on illegal mining by the Supreme Court has led to severe shortage in availability of iron ore to the domestic steel industry.
India exported iron ore worth 4.7 billion dollars in 2010-11 and imported finished steel worth 11 billion dollars, thus contributing negatively to widening trade deficit and draining foreign exchange reserves. 
China had imposed a duty of 40 per cent on exports of coal and coke for value addition within the country. This led to creation of the world’s largest steel manufacturing capacity and accelerated China’s GDP growth, he said.

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