Commerce ministry sees no logic in iron ore export tax waiver for NMDC - 26 Aug, 2008
ET reported that the steel and commerce ministries are differing over public sector mining company NMDC’s request for a waiver of export duty on its long term iron ore export obligations.
The commerce department has prepared a Cabinet note stating there is no justification for a waiver on exports since international prices are high this year while the steel ministry supports NMDC’s request.
Commerce ministry officials told ET Australia, the major supplier of iron ore has hiked prices between 65% to 95%. This indicated the realization from sale of iron ore in the international market by India was also going to be high. An official said that “There is no logic behind giving NMDC a duty waiver. We have put our arguments in our Cabinet note. Now, the Cabinet has to take a decision on it.”
As per report, steel ministry is keen that NMDC should be exempted from 15% export duty and additional railway freight charges on exports to Japan and Korea under long term agreement.
Out of its total production of over 30 million tonne of iron ore, NMDC exports about 3.5 million tonne of high grade lumps and fines to Japan and Korea.
