Last Updated: 5/21/2025 11:39:00 PM
National Manufacturing Competitiveness Council has warmed up to the cause of the domestic steel industry by arguing in favor of retaining export restrictions on iron ore. This will add weight to the industry's clamour against the government's proposed move to ease export restrictions on iron ore and boost forex revenues. While steel secretary Mr DRS Chaudhary has opposed it in a letter to commerce secretary Mr S R Rao, two of the country's largest private steel players, JSW Steel and Essar Steel, have also written to the government against it. The industry moves gather urgency since the mines and commerce ministry officials are likely to discuss the proposal soon. Last week, the rupee faced its worst onslaught, tumbling nearly 6% in value against the US dollar. Among other steps, the government is also planning to allow iron ore exports to earn foreign exchange and improve the current account deficit. In a letter to the union commerce secretary Mr SR Rao member secretary NMCC, Mr Ajay Shankar said that "The current regime of export duty and export freight on iron ore should continue till the restrictions on mining and other regulatory decisions are eased to allow resumption of iron ore production.” This is necessary to ensure capacity utilization of domestic steel industry and ramp up of additional capacity. The NMCC member secretary further said that "The domestic industry has adequately ramped up pelletization capacity to use domestic fines and is using fines in increasing quantities. The traditional argument of need for exports due to lack of demand for fines, has now lost most of its relevance. Some 25 million tonne of fines was used in Karnataka alone." JSW Steel and Essar Steel have also opposed the proposal to ease exports. Highlighting severe ore crisis being faced by JSW Steel, chairman Mr Sajjan Jindal requested the PM to ensure ore availability for producers that can help raise output levels and curb steel imports. Joining the issue, steel secretary has also said if domestic steel industry fails to meet demand, consumers will be forced to import steel. Source - Economic Times
