New Delhi, Mar 6 (UNI) Federation of Indian Mineral Industries (FIMI) has urged the Governemnt to repeal the cess imposed on the export of iron ore in the budget proposals for 2007-08 without further delay.
Addressing newsmen here today, FIMI's Senior Vice President Rahul N Baldhota said that it would adversely affect the working of all those miners who were in the business of iron ore.
He said the Finance Ministry has imposed this cess of Rs 300 per tonne on the assumption that would fetch around Rs 3,000 crore as revenue for the Government, but in reality it would lead to a 50 per cent fall in the exports of iron ore from the country and in that eventuality the net loss to the exchequer would be in the range of Rs 2,500 crore.
When asked to explain how he has arrived at this specific figure to that, Mr Baldhota said as the export would fall the revenue earnings of the ports and transporters would also fall.
He said apart from this a huge chunk of the employment that were generated in the remote and extremely rural areas would be on the verge of retrenchment, he added.
Responding to volley of questions, Mr Baldhota said major chunk of the iron ore that is being exported is in the form of ''Fines'' and there is no takers for that. It is an altogether different technology for using ''Fines'' in steel making.
He said neighbouring China has the technology where they can use any grade of iron ore and fines for steel making.
Apart from this, to set up a new steel plant in India it takes nothing less than three years in view of our present bureaucratic system but in China it takes hardly eight months to put up a steel plant, he added.
He said out of the 100 million tonnes (MT) of iorn ore that is being exported from the country around 74 MT is in the form of fines.
He said the Government should have found out the real position before the imposition of this cess.
He said, ''the imposition of this cess, however, had adversely affected the economics of the secondary steel producers.'' He said the FIMI has sought time from the Finance Minister to place their point of views before him.
He, however, said the issue has been raised before the Finance Minister who has assured to review the matter.
UNI
Addressing newsmen here today, FIMI's Senior Vice President Rahul N Baldhota said that it would adversely affect the working of all those miners who were in the business of iron ore.
He said the Finance Ministry has imposed this cess of Rs 300 per tonne on the assumption that would fetch around Rs 3,000 crore as revenue for the Government, but in reality it would lead to a 50 per cent fall in the exports of iron ore from the country and in that eventuality the net loss to the exchequer would be in the range of Rs 2,500 crore.
When asked to explain how he has arrived at this specific figure to that, Mr Baldhota said as the export would fall the revenue earnings of the ports and transporters would also fall.
He said apart from this a huge chunk of the employment that were generated in the remote and extremely rural areas would be on the verge of retrenchment, he added.
Responding to volley of questions, Mr Baldhota said major chunk of the iron ore that is being exported is in the form of ''Fines'' and there is no takers for that. It is an altogether different technology for using ''Fines'' in steel making.
He said neighbouring China has the technology where they can use any grade of iron ore and fines for steel making.
Apart from this, to set up a new steel plant in India it takes nothing less than three years in view of our present bureaucratic system but in China it takes hardly eight months to put up a steel plant, he added.
He said out of the 100 million tonnes (MT) of iorn ore that is being exported from the country around 74 MT is in the form of fines.
He said the Government should have found out the real position before the imposition of this cess.
He said, ''the imposition of this cess, however, had adversely affected the economics of the secondary steel producers.'' He said the FIMI has sought time from the Finance Minister to place their point of views before him.
He, however, said the issue has been raised before the Finance Minister who has assured to review the matter.
UNI
Oneindia Login