The Hindu Business Line : Govt to examine issue of export duty on iron ore

New Delhi March 16 The Finance Minister, Mr P. Chidambaram, today promised some action on the Budget proposal to impose export duty of Rs 300 per tonne on iron ore.

Replying to the general debate on Budget 2007-08 in the Lok Sabha today, the Minister said that the Government would examine the facts and circumstances related to the industry's concerns about the duty.

He also said that the Government would take appropriate steps to ensure that cement prices do not increase abnormally.

Mr Chidambaram said that two contradictory views are being presented by the steel industry and the iron ore exporters on the issue of duty on iron ore exports.

While the steel industry has supported the move, the iron ore exporters have pleaded for reconsideration of the duty on iron ore fines.

"We had already gathered a lot of material and we have asked the stakeholders to give us more material if they wish to do so. We shall consider all the facts and circumstances objectively and take suitable decisions."

Commenting on the rising cement prices, he said that the Government cannot plead helplessness or remain passive when the price of a commodity like cement rises abnormally and at a very fast rate.

Stating that the Government was still hopeful that cement manufacturers will realise their responsibility and moderate prices, the Finance Minister said: "We are keeping a careful watch over the situation and will take appropriate steps to convince the cement manufacturers to act accordingly."

He added that if manufacturers face difficulties in increasing capacities or accessing coal or other raw materials, the Government would certainly help them.

Stating that dual excise duties are not a new phenomenon, Mr Chidambaram said: "Excise duties on most goods are ad valorem where the duty in rupees rises with the price of the commodity. Excise duty on cement, on the other hand, has been kept at specific rates for many years at the request of the industry."

The Lok Sabha subsequently adopted the Budget through a voice vote. However, the entire Budget would be considered passed only after the Demand for Grant and the Finance Bill are passed in the Lok Sabha and the Rajya Sabha.

The Lok Sabha today also approved the relevant appropriation Bill authorising the Government to draw from the Consolidated Fund of India a sum of Rs 3,94,155 crore for the first three months of year 2007-08.

It also approved appropriation of Rs 3,67,612 crore by way of third batch of supplementary demand for the current fiscal.

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