BL reported that differing sharply with the Commerce and Industry Ministry, the Indian Mines Ministry favors export of all types of iron ore. It is also against canalising exports of high grade iron ore through the State run MMTC.

A senior government official told Business Line that “Why allow exports of iron ore with 55% ferrous content? The Mines Ministry is in favour of no restrictions.”

He said involving an agency would unnecessarily increase export costs. MMTC will get about one per cent of the consignment value if exports are canalised through it. There is also apprehension of delays and more regulations. So, such a move should be avoided.

The Mines Ministry is yet to firm up an official view. He said that “We hope to finalise it soon and send our comments.” However, the matter is unlikely to go to the Cabinet before mid March, when polls end in five States.

The Federation of Indian Mineral Industries has also opposed the move to canalise exports of high grade ore. Mr RK Sharma secretary general of FIMI said that “This would mean putting the clock back again.”

The Commerce Ministry had recently moved a draft Cabinet note on canalising high grade iron ore exports as part of the strategy to curb illegal exports.

(Sourced from BL)