In a move that the iron ore mining industry says is a throwback to inspector
raj, the commerce and industry ministry has moved a Cabinet note proposing that
exports of iron ore with over 55 per cent ferrous content be canalised through
the state-owned trading company MMTC Ltd. MMTC will get around 1 per cent of the
value of exports as commission.
Of the total domestic output of 220 million tonnes of iron ore, Indian miners
export 115 million tonnes on their own and doubt if MMTC has the capability to
handle such huge quantities. They have told the mining ministry that their right
to export should not be usurped. Making MMTC the sole canalising agency will
encourage middlemen and brokers in the business, they argued. Further, they fear
junior-level executives at MMTC may sit on orders and not clear consignments on
time.
The mines ministry has already raised these concerns with the department of
commerce and sought a meeting with MMTC to understand if it is indeed equipped
to handle such large transactions. Big miners such as Sesa Goa have aired their
apprehensions with the mines ministry. “We oppose the proposal,†said a mines
ministry official, adding that the move would foster corruption.
Source: PTI
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