Source - CNBC-TV18

Bhushan Steel Limited expects to benefit from hike in export duty on iron ore. In an interview to CNBC-TV18, Mr Neeraj Singal MD of Bhushan Steel Limited said that "It will help Bhushan will Steel because duty will go up on iron ore and there will be more availability. Also, iron ore prices are likely to come down."

Its proposed steel project in West Bengal is on hold due land acquisition issues. He added that "I don’t foresee that we can acquire land privately of such magnitude without the help of the government. Till the time it gets sorted out, it will be on hold.”

The company might have to scrap the project if the issue don't resolve. Mr Singhal said that "Land is a primary thing for any project. If land is not there then definitely it will be impacting the project.”

Below is the edited transcript of Mr Singal’s interview with CNBC-TV18.

Q - Iron ore export levy has been raised to 30%. Do you think Bhushan Steel benefits significantly from that? What is the scenario right now?

A - Definitely, it will help Bhushan because duty will go up on iron ore and there will be more availability. Also, iron ore prices are likely to come down.

Q - Can you quantify what is the kind of buying that you do from domestic markets at this point? How much of a decline in prices are you expecting because of the levy of this export duty?

A - We operate a steel plant of about 2 million tonne. We buy all the ore locally from Orissa and nowhere else. With this happening, Orissa has been a major contributor to export about 35 to 37 million tonne. With this 10% rise in export duty definitely the availability of the local ore more to the domestic companies especially in Orissa.

To read full transcript, please visit www.steelguru.com