Industry not happy with Rs 50 reduction in iron ore export duty

Panaji, May 3 (UNI) The Goa Chamber of Commerce and Industry (GCCI) president Nitin Kunkuleinkar said he was not happy with the Union Finance Minister P Chidambaram's announcement today in Parliament about reducing the export duty on iron ore by mere Rs 50 per tonne.

''We are not too happy and he should have reduced it further to Rs 100 from Rs 300 announced initilly,'' Mr Kunkuleinkar told UNI.

The industry, he said, expected the levy of duty grade wise. Goa is the largest exporter of iron ore, particularly low grade to traditional countries besides China.

Goa Mineral Ore Exporters Association executive director S Sridhar, however, welcomed the announcement, saying it would benefit the industry to some extent.

Almost 50 per cent of the 26 million tonnes of iron ore is exported every year from Goa. It is of low grade with below 62 per cent Fe content, he said.

Referring to the hue and cry raised by a section of the industry on imposition of export duty on iron ore, Mr Chidambaram told Parliament today that while the export duty on iron ore lumps had been welcomed by all sections, he received representations for levying export duty on iron ore fines, especially with low Fe content.

After extensive consultations, he had proposed to reduce the export duty on iron ore fines of Fe content 62 per cent and below to Rs 50 per tonne. On iron ore fines with Fe content above 62 per cent and on iron ore lumps, the duty will remain at Rs 300 per tonne, the he added.

UNI