Press Information Bureau

Government of India

Ministry of Steel

22-November-2012 16:06 IST

The Minister of Steel, Shri Beni Prasad Verma has said that during the year 2011-12, the country’s total production of iron ore was 169.66 million tonnes (provisional) as against the total estimated consumption of about 116.3 million tonnes by the domestic iron and steel industry. Therefore, production of iron ore in India was in excess of the total estimated domestic consumption by the iron and steel industry. As per the available information, the hard coking coal spot prices are on a declining trend in international market during last one year and have fallen from the level of $310 per tonne in June, 2011 to $145 per tonne in October, 2012 (Free on Board (FOB) Australia; Source: SBB, as provided by Economic Research Unit, Ministry of Steel).

In a written reply in the Rajya Sabha today Shri Verma said, to improve the availability of iron ore for the domestic iron and steel industry at affordable price, the Government has increased the export duty on iron ore from 20% ad valorem to 30% ad valorem on all grades of iron ore (except pellets) with effect from 30.12.2011. Import duty on coking coal and steam coal has also been kept at Nil.

***
NSK/DB

Export duty on iron ore raised to curb exports and boost domestic availability; import duty on coal retained nil. The Government increased the export duty on iron ore (excluding pellets) to restrict exports and improve domestic availability while maintaining nil import duty on coking coal and steam coal; this policy response is contextualised by production exceeding domestic consumption and a decline in international coking coal spot prices.