The recommendation has been made to the Union Ministry of Finance. Sources in the MoM have told GoaChronicle.com that this decision has been taken acknowledging the fact that the local industry rarely utilizes low grade iron-ore and the stockpiles are only increasing. “A lower tax on exports could help companies ship these stocks out,” expressed Vishwapati Trivedi, secretary-mines, MoM.
Low-grade Indian fines are used mostly by steelmakers in China that have the facility to use them in their furnaces. Indian mills typically use high-grade lumps.
Goa, which exports more than half of India’s iron ore, banned all mining after Shah Commission report exposed that the government lost an estimated Rs 34,935 crores because of illegal mining. Goa is expected to permit exports of the material from the first week of October.