Experts panel on ore exports soon
The controversy over iron ore exports may prolong further.
By Subhash Narayan, TNN |
NEW DELHI: The controversy over iron ore exports may prolong further. After a committee of secretaries (CoS) failed to reach a consensus over the issue, the government is now considering constitution of an expert committee to study the issue and recommended measures to end the present controversy.
The issue of iron ore exports has divided the mining and steel industries with the ministries of steel and mining adopting widely varying views on the issue. While the mining industry wants ore exports to continue unhindered, the steel industry feels that this would exhaust the country’s rich resources that should be protected for value addition within the country.
The Planning Commission has favoured constitution of an expert committee after a reference in this respect was made by the prime minister’s office (PMO), said an official source. Constitution of the panel would be notified soon after approval from the PMO.
The proposal for a new expert committee on iron ore exports follows a recent letter from the Competition Commission of India (CCI) to PMO favouring a new body to study how value addition within the country could be promoted and how export could be discouraged. The commission is understood to have also suggested a need to freeze iron ore export at current levels and has said that cess should be levied on all exports.
The country is likely to produce about 160 million tonne (mt) of iron ore during 2006-07. Over 95 mt out of this is expected to be exported mostly to spot markets in China. A CoS set up to examine iron ore exports failed to reach a consensus and referred the issue back to the government. The export issue was earlier taken out of the New Mineral Policy being finalised by the government on the recommendations of the Hoda Committee.
The steel industry has for long been asking for a freeze on export to protect the national asset. “...there is a need for more stringent and specific measures like a quantity ceiling to make sure that we conserve our minerals and give a fillip to value addition within the country,” said Tata Steel
The issue of iron ore exports has divided the mining and steel industries with the ministries of steel and mining adopting widely varying views on the issue. While the mining industry wants ore exports to continue unhindered, the steel industry feels that this would exhaust the country’s rich resources that should be protected for value addition within the country.
The Planning Commission has favoured constitution of an expert committee after a reference in this respect was made by the prime minister’s office (PMO), said an official source. Constitution of the panel would be notified soon after approval from the PMO.
The proposal for a new expert committee on iron ore exports follows a recent letter from the Competition Commission of India (CCI) to PMO favouring a new body to study how value addition within the country could be promoted and how export could be discouraged. The commission is understood to have also suggested a need to freeze iron ore export at current levels and has said that cess should be levied on all exports.
The country is likely to produce about 160 million tonne (mt) of iron ore during 2006-07. Over 95 mt out of this is expected to be exported mostly to spot markets in China. A CoS set up to examine iron ore exports failed to reach a consensus and referred the issue back to the government. The export issue was earlier taken out of the New Mineral Policy being finalised by the government on the recommendations of the Hoda Committee.
The steel industry has for long been asking for a freeze on export to protect the national asset. “...there is a need for more stringent and specific measures like a quantity ceiling to make sure that we conserve our minerals and give a fillip to value addition within the country,” said Tata Steel
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