BS reported that the recent government move to increase the export duty on iron ore from the prevailing 20% to 30% has received favorable response the Bangalore Chamber of Industry and Commerce, which has commended this policy initiative as a Step in the positive direction for Karnataka’s ailing Steel industry.

Bangalore Chamber of Industry and Commerce feels it is a significant step which will not only safeguard the interests of the steel industry but also curb illegal mining and conserve iron ore reserves for domestic consumption.

Mr Vinod Nowal president of BCIC said that “This initiative of the Finance Ministry shall increase the availability of iron ore to the steel industry in the country by discouraging export.”

Mr Nowal said that “Illegal mining, rampant in Karnataka, has resulted in gross depletion of the country’s scarce iron ore resources. Rising concerns over illegal mining has resulted in a number of measures being taken to exercise control over it. As its direct precipitate, the Supreme Court in its ruling has imposed a blanket ban on mining in Karnataka. This has had negative repercussions toward the continuous operations of the steel industry in the state.”

Mr Nowal added that “The iron ore exports in vast quantities from India are still happening when several steel companies and sponge iron units are closed due to a lack of iron ore supply across the country. This initiative of the Finance Ministry shall increase the availability of iron ore to the steel industry in the country by discouraging exports.”

He said that “India has a long way to go; we have to build a large number of dams, power plants, bridges, airports, ports among other infrastructure projects. Therefore, the country requires a robust domestic steel industry to sustain infrastructure development. The rise in steel production to facilitate this growth shall require India’s rich non renewable iron ore resources.”

(Sourced from BS)