Industry threatens closure if mining export duty not withdrawn

Panaji, Mar 1 (UNI) Goa's iron ore export industry, the second largest foreign exchange earner after tourism, has threatened to close down if the Centre does not withdraw the Rs 300 per metric tonne export duty proposed in the Budget 2007-08.

''We have already cancelled five China-bound vessels today under the impact of the budget. If the Centre does not roll back the duty, the industry will have to close down,'' Goa Mineral Ore Exporters' Association executive director S Shridhar said.

The association plans to represent their grievance to Union Finance Minister P Chidambaram soon in this regard.

Last year, the state had exported 36 million metric tonne ore, with China being the major importer, besides Japan, Pakistan, Europe and West Asia.

Australia and Brazil, competitors to Goa, may now establish themselves in a few years if the state is burdened with the duty, which was abolished 15 years ago, he added.

UNI