Steel ministry opposes export of good quality iron ore

New Delhi, May 20 (UNI) The Steel Ministry has asked the Ministry of Commerce to curb the export of Iron ore, so that interests of the domestic steel industry are protected.

The Steel Ministry sources said that they placed a proposal for reducing the export of Iron ore from India.

They pointed out that till March 31, 2006, the country was under the ten years export obligation but thereafter ''we are free from all those commitments and thus it is not in our national interest that we should still continue to export our best iron ore fines with iron content of as as much above 60 per cent.'' They said India should rather use these iron ore for value addition purposes. This would enable the domestic steel producers to reduce their cost of production and become more competitive. If at all there is a need for export, the quantity should substantially be reduced and the contract should either be on a year to year basis or at the most, for a period of five years.

The sources pointed out that this view of the Steel Ministry was not acceptable to the Ministry of Finance as well as to the Commerce Ministry. In their view India has some obligations to South Asian Association for Regional Cooperation (SAARC) and the country must continue to export the same quantity of the best variety of iron ore fines.

Presently, the country is exporting 6.5 million tonnes of best grade of iron ore fines from the Bailadilla Mines of Chhattisgarh, the sources added.

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