Goa has urged the
Centre to roll back the increase in iron ore export duty especially that on the
low-grade variety exported from the state.
largely being low grade [below 58% iron content], and not processed for steel
making in the country, State of Goa has requested the Finance Ministry to do
away with export duty. Currently the customs charge fifty per cent duty on export
of this low grade ore from Goa. The export duty was done away with during 2016
This kind of gesture was necessary for sustainable
mining in the state,” chief minister
Pramod Sawant’s office said in a statement after his meeting with Union finance
minister Nirmala Sitharaman on May 23rd where the matter was taken up.
The Centre on May 21 increased the duty on all grades of
iron ore to 50 per cent to increase domestic availability.
Goa’s iron ore
mining industry is completely dependent on exports since barring one steel
plant, there are no domestic buyers for its ore given the cost of
transportation from the mines to the plants.
Mining industry is currently at a standstill barring the export of the ore mined prior to the
shuttering of mining in 2018 and the movement of that confiscated and auctioned
by the government. Several companies have also been exporting ore claiming it
has been extracted prior to 2007 when Goa’s mining leases expired.