Government To Giver Incentives To Increase Iron Ore Supply In The Domestic Market

Government will give incentives to increase iron ore supply in the domestic market. Incentives will be given to companies investing on purifying and using low grade iron ore. ET Now’s Prakash Priyadarshi says the move will check higher grade iron imports. EXCLUSIVE SOURCES: Government planning incentives to companies using low grade Iron ore Inter-departmental committee has recommended concessions in royalty on use of low grade iron ore Plan to beneficiate 58% Fe grade Iron ore to 62% Fe grade and above Government plans to beneficiate 80% of the excavated 58% Fe grade Iron ore to higher grade Companies will be allowed to transfer low grade Iron ore to nearby mines having smelter Committee has recommended 5% and 10% concession based on beneficiating process Concession will be provided on 20% quantity of total annual production Committee has recommended this policy to be in place for 5 years Companies/Mines beneficiating iron ore beyond 80% will be given star rating Mines ministry has asked for comments from industry/companies Big companies like NMDC, Tata may be benefitted in short term Small companies /standalone miners will be burdened as it requires more investment Indian companies mostly import higher grade (above 62% Fe grade) iron ore In 2020 India imported $ 124 million worth of Iron ore India exports lower grade iron ore (58% Fe grade & Lower)#IronOre #IronOreindia #IronOreincentives