December 02, 2008

Railway ministry seeks ban on iron ore export

Ruling out any reduction in the freight rate on steel, union railways ministry has suggested increasing the export duty on iron ore by 15% to ensure the availability of mineral for domestic steel producers.

Mr Lalu Prasad Yadav union railways minister said that "Government should ban iron ore export and impose 15% duty to discourage its export. This would help the local industry. I am not in favor of export of iron ore. Not even a small quantity of iron ore should be allowed to be exported."

Mr Yadav said that "It is an irony that a country that imports steel, in a reckless manner refuses a ban on exports of iron ore without considering that if this is not stopped, the country’s mineral wealth will be depleted. Till a complete ban on the country’s iron ore exports is placed, the imposition of customs duty could work as a temporary measure."

Speaking about his ministry, Mr Yadav said that he would lay down his office next year with a surplus of about INR 1,000 billion for the Indian Railways as against INR 690 billion in 2007-08. He added that manpower was the organization’s strength.

He added that “The government had a proposal to retrench the employees as the railways were running into losses. But it was turned down. I felt the great human resource of the railways should not be retrenched, it should be strengthened. It was because of this reason that the railways could ensure its turnaround in the last couple of years."