The government of India on Monday ruled out banning export of iron ore from the country.
Replying to supplementary in the Rajya Sabha, Mr BK Handique mines minister said export of iron ore was necessary as piling up of the ore might cause environmental hazards. Mr Handique said that "It is necessary to export iron ore, we lack the technical knowledge to use all of it.”
The statement made by minister of state for commerce and industry Mr Jyotiraditya Scindia in reply to a Lok Sabha question justified exports saying that India was mainly shipping out iron ore fines, which is not used by domestic steel industry due to its limited sintering and pelletization capacity. He said “Any restrictions on its exports will not only harm the environment but would also affect economic activities in remove areas where handling of iron ore is the main employment generating activity.”
The export of iron ore has always been an issue but the pitch has been raised after Karnataka government decided last month to ban exports and subsequently extended it to taking it outside state borders.
India produced 226 million tonne of iron ore in 2009-10, more than half of which about 117 million tonne was exported.