Essar seeks PM's help for iron ore supply

NEW DELHI: Ruias-led Essar Steel has sought Prime Minister Manmohan Singh's intervention in getting allocation of 3.5 million tonnes of iron ore reserved by mining giant NMDC for exports.

Any permission to MMTC for export of NMDC's iron ore would deprive the national exchequer of Rs 6,500 crore, which would have accrued through export of value-added steel, Essar group chairman Shashi Ruia said in a letter to the prime minister.

"Availability of 3.5 million tonnes of iron ore would enable export of minimum 2 million tonnes of value-added steel products," he said. "Which would result in additional foreign exchange earning of $1.5 billion," Mr Ruia said.

Urging Mr Singh to direct NMDC not to export the vital raw material for steel-making, Mr Ruia said Essar Steel is ready to "adequately" compensate the Indian miner at par with the FoB value being sought through exports.

"This will ensure that NMDC/MMTC do not lose by way of any price differential, which it may finalise with the overseas steel mills," Mr Ruia said.