Centre not to freeze exports of iron ore

New Delhi: The government is likely to decide against freezing iron ore exports at current levels but may continue with the recently imposed export duty on all grades of iron ore.

The Planning Commission has raised strong objections to cap iron ore exports and has suggested that the Rs300 per tonne export duty on ore is a strong enough deterrent for exporting the mineral, an official source said.

Earlier the Competition Commission of India (CCI) had suggested to PMO to freeze iron ore export at current levels and encourage value addition within the country.

However, it is understood that the Planning Commission has favoured unhindered exports of iron ore as the entire production of the mineral is not consumed in the domestic market. Moreover, it has suggested that mineral resources of the country should be established afresh before any policy decision on the subject is taken.

The issue of iron ore exports has divided the mining and the steel industries with ministry of steel and ministry of mining taking sides on the issue. While the mining industry wants ore exports to continue unhindered, steel industry feel that this would exhaust country''s rich resources that should be protected for value addition within the country.

The steel ministry has also suggested that ore exports should be frozen at current levels and then brought down gradually over three to five year period.