PANAJI
With steel sector facing major iron ore shortage for local consumption, the Central Government is considering a ban on the export of the raw material.
Union Steel Minister Dharmendra Pradhan admitted to the constraints in the supply of iron ore to the steel sector and said that he would look into various suggestions for ban on export of iron ore.
Pradhan was interacting with the members of the merchant chamber of commerce and industry (MCCI) via webinar.
Mining firms in Orissa have shut their operations as they find it non profitable any more. This has resulted in a major shortage of iron ore. A total 21 mining blocks in Orissa used to produce 90 million tonnes of ore.
However, the business is no more profitable after accounting for various taxes to govt including royalty, mineral fund, mineral trust, etc.
"Stopping export is solely for the benefit of the private sector steel players. Today the higher the sale price of iron ore, the higher the royalty and other taxes/duties the state and government earnings are. An introduction of any ban reduces the earnings of the economy and the government, but helps the financials of the private steel sector," said Ambar Timblo, President of Goa Mineral Ore Exporters' Association (GMOEA).
Meanwhile, the Centre is keen on finding a solution to the Goa mining issue as mining is a key economic activity in the state, Union mines minister Pralhad Joshi said.
Mining operations in Goa came to a halt in March 2018 after the Supreme Court quashed 88 mining leases. "Goa government has submitted a representation. We are looking at various issues right now. I cannot comment much. But, as far as the sentiments of Goans are concerned, we are with them. We want to find out a solution to deal with the mining issue in the state," the minister told PTI. "It (mining) has been stopped after the Supreme Court's judgment. But, still, we are positively considering the request of the Goa government," Joshi said.
