The Centre may increase the duty on iron ore to discourage exports, said steel minister Virbhadra Singh.
“Personally, I am against export of iron ore by starving our local steel industry. But, it is not possible to immediately stop exports,” he told the media.
To ensure sufficient raw material for the local industry and to discourage exports, the government recently imposed a 15 per cent export duty on iron ore lumps and 5 per cent on ore fines. “If necessary the government will not hesitate to increase the duty,” he added.
Singh was here to present the steel minister’s trophy to Visakhapatnam Steel Plant. He also dedicated the Rs 360-crore fourth coke oven battery at the plant.
He said the government was looking into VSP’s demand for captive iron ore mines. The company is planning to own mines in Andhra Pradesh, Karnataka, Orissa and Chhattisgarh.
The ministry is also taking steps to increase the steel production in view of the rising demand for steel, which is growing at 8-10 per cent year on year.
“We are currently producing about 70 million tonnes of steel. By 2011-12, this will increase to 120 million tonnes,” he said, adding private sector companies have lined up 30 million tonnes over the next two to three years.