Times of India: Raipur: Sunday,
May 19, 2013.
National
Mineral Development Corporation (NMDC) has entered into an agreement with
Japanese and Korean companies for supply of iron ore from Bailadila mines in
Chhattisgarh 'overlooking' objections raised by ministry of steel.
The export of
quality iron ore was being proposed when domestic industries are facing crisis
of iron ore and are shutting down.
The fact came
to light following an RTI query by activist Kusum Chandrashekhar Gaur to
ministry of steel. The ministry informed that NMDC and ministry of commerce
were apprised with the opinion of ministry of steel over the export to Japan
and Korea, but ministry of steel refused to provide details of the opinion
stating, 'the same could affect the commercial interests of NMDC'.
Replying to a
similar query under RTI Act, NMDC has informed that the Bailadila mines are
having an estimated reserve of just around 30 years.
"Given
the quantity of reserves available there seems to be no rationale behind the
exports that too at the cost of domestic units, which are shutting down,"
Gaur, an activist based at Neemuch in Madhya Pradesh said.
According to
Chhattisgarh Sponge Iron Manufactures Association president Anil Nachrani,
pricing policy and non-tactical cost of iron ore supplied by public sector
giant NMDC is responsible for the situation. NMDC is exporting iron ore to
Japan at a much lower rate than its domestic sale price.
After two
years of break in 2009-10 and 10-11, NMDC has again resorted to export of iron
ore to Japan, despite getting a lower realization in exports than the domestic
market thereby subsidizing Japan's steel industry, he said.
"It is
surprising that NMDC is exporting iron ore to Japan at a lower price at a time
when the domestic steel industry is struggling. We smell a rat in the
NMDC-Japan pricing deal", Nachrani alleged.
He claimed
that the public sector giant was supplying iron ore to Japan at a much lesser
price than the prices in the domestic market presumably under pressure from the
Union ministry of commerce to maintain good bi-lateral relations with that
country.
.JPG)
.JPG)
