PANAJI: Increase in the demand for steel in the domestic market coupled with reduction in the iron ore export can help India match China in the production of the metal, steel industry players have said. While the steel industry is lobbying for imposition of export tax on iron ore exports from the country, the exporters are fighting for more leeway in the exports.
Official figures revealed that during 2008—09, the production of iron ore was 227.64 mt while the domestic consumption was only 87 million. Export duty on iron ore fines is five per cent and that on lumps has been increased to 10 per cent from five per c ent, experts said.
“Close to 50 per cent of the iron ore produced in India is exported,” global consultancy firm Ernst & Young said in a report presented during the ongoing Global Steel Conference here The experts feel that Indian government is targeting 200 m.t of steel productivity by financial year 2020 for which 320 m.t. of iron ore is needed.
“Iron ore exports will naturally come down and will be diverted to domestic market if there is demand locally,” said Mr S K Roongta, Chairman, Steel authority of India limited (SAIL). “The country will be able to meet its additional iron ore requirement by making investment in beneficiation to improve the quality of the existing ore and also by focusing more on exploration and prospecting to identify resources and boost production significantly,” the experts said during the conference.
Source : Business Line