In the Union Budget 2013-14, announced by the Finance Minister P Chidambaram today, there has no cut down in the 30% export duty on both Iron ore lumps and fines.
Union Mines Minister Dinsha Patel and Federation of Indian Mineral Industries (FIMI) had sought a 50% cut on export duty in the Budget 2013 so as to boost production and enhance exports of low grade fines which cannot be used in domestic market.
Finance Ministry is encouraging steel industry to use iron ore for domestic purposes as reserves are not in plenty.
Indian Iron ore export figures witnessed a sharp drop of 68% in April 2012 to January 2013.
Exports of iron ore after value addition will result in better realizations and desired returns.
In the last year's budget, government lowered basic customs duty on plant and machinery for setting up of iron ore pellet plants or iron ore beneficiation plants from 7.5% to 2.5% to discourage exports.
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