By Our Correspondent
BHUBANESWAR/NEW DELHI: Union PNG-Steel Minister Dharmendra Pradhan on Friday came down heavily on Congress for spreading misinformation and false propaganda on iron ore pellets exports. Union Minister Pradhan’s hardhiting statement came a day after Union Commerce and Industry Ministry alleging about export of pellets much before 2014, means, before Narendra Modi came to power.
“ Pellet exports have been allowed by past Congress Governments since 1992. Time and again, to try and denigrate the Modi Government, Congress party ends up criticizing their own past policies,” Pradhan said.
“Also, export duty on iron oxide pellets export was reduced to ‘nil’ during the 2011-12 budget by the then Indian National Congress Government. It was said that same is being done to promote the export of iron oxide pellets as a value-added product,” he said.
“History is witness to the fact that successive past Indian National Congress Govts. promoted crony capitalism by allocating state-owned mineral resources at bargain-basement rates on a nomination basis depriving the Indian citizens from benefitting from the true value of its mineral wealth,” Dharmendra said.
“It was Modi Govt. which introduced a transparent and fair bidding process for mineral resources which was free from influence. This unlocked the maximum value of the mineral resources for respective State Government coffers and thereby benefitting the people of India.Hon’ble Prime Minister Shri Narendra Modi’s vision is to convert India’s mining sector from a primitive primary sector to an advanced industrial sector for the 21st Century and generate millions of jobs through investment and transparent governance,” Pradhan said.
“The fact is that contrary to the crony capitalism of Indian National Congress, Modi Government believes in the mantra of “Minimum Government and Maximum Governance”. We believe in having a free, fair, and transparent market that provides meaningful employment to our young population,” he said.
Earlier, on the issue of Iron Ore exports, the Department of Commerce, Ministry of Commerce & Industry had clarified that export policy restriction put in 1998 only for KIOCL: On 21.01.1998, vide Notification, a specific entry was added in the export policy regarding “Iron Ore pellets manufactured by Kudremukh Iron Ore Company Limited (KIOCL) out of concentrates produced by it”. Thus, the export policy was regard to only Iron Ore pellets manufactured by KIOCL, which was ‘canalized’ through KIOCL, a CPSU under Ministry of Steel.
No change in policy for Iron Ore Pellets not manufactured by KIOCL: Subsequently, vide its Notification dated 26.09.2014 the export policy of Iron Ore pellets manufactured by Kudremukh Iron Ore Company Limited was amended to ‘Free’ from ‘canalised’. Further, in the notification a policy condition was also added that the export of Iron Ore pellets manufactured by KIOCL is to be done by KIOCL Limited, Bangalore or any entity authorised by KIOCL Limited, Bangalore. However, there has been no amendment to the export policy of Iron Ore Pellets not manufactured by KIOCL.
Export duty on Pellets made Nil in 2011: To promote the export of Iron Ore pellets as a value added product, then Finance Minister Pranab Mukherjee, had reduced export duty to ‘nil’ during the 2011-12 budget announcing in his budget speech”Iron ore is also exported in a value-added, pelletized form. Full exemption from export duty is being provided to Iron Ore pellets to encourage the value addition process for fines.”
Iron Ore Pellet Export happening prior to even 2014: As per the Export Policy, items not mentioned specifically in the export schedule are “free” for exports. As per export data, Iron Ore Pellets were taking place even prior to change in export duty in 2011-12. The iron ore pellet export data in the ten years before the 2014 notification is given in the annexure and is available in public domain. Thus, the linkage to changes in 2014 notification is misleading and is not backed by data.
Legal position still under consideration: The legal opinion from Deputy Legal Advisor, Department of Legal Affairs has not been endorsed by the senior officials of the Department and cannot be taken as the official legal view on this matter. The matter for final legal position is under consideration.
