The Hindu Business Line : Iron ore players hail duty cut

Bangalore, Dec. 7 With the Government bringing down the export duty of iron ore lumps to 5 per cent and fines to zero per cent, the iron ore industry expects to be more competitive in the global market. Mr Rahul Baldota, President of the Federation of Indian Mineral Industries, said that he welcomed the move.

“We, however, hope that the Railways will also reduce the freight rates to help become more competitive,” said Mr Baldota, also a whole-time Director at MSPL Ltd. In his view, bringing down iron ore railway freight from 200X class to 120 class would be of “great help to the industry”.

The sops for the textile industry will be a short-lived benefit, said Mr Rajendra Hinduja, Executive Director (Finance), Gokuldas Exports. The two per cent interest support that the Government has announced today is valid only till March 31, 2009. “We are now negotiating deals for the next 4 to 5 months, and if this interest support does not hold good after March next year, there’s no great benefit for us,” he said.

“Even if you add the two per cent interest savings for exporters announced on Saturday, this means a four per cent savings for us, which will only take us back to the pre-September position, which is fine,” he said, adding that the industry expected at least a 15-month pep towards exports.

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