The government is expecting to earn over USD 933 million (about Rs 5,989 crore) from exporting 16.5 million tonnes (MT) of high grade iron ore to Japan and South Korea, Parliament was informed today.

Government approved exports under Long Term Agreements (LTAs) to Japan and South Korea through MMTC for supplying 16.5 MT of high grade iron ore, Minister of State for Steel and Mines Vishnu Deo Sai said in a written reply to Lok Sabha.

"The foreign exchange expected to be earned is around USD 311.05 million per annum at current sale prices against export of iron ore under LTAs," he added.

In June, the Cabinet, chaired by Prime Minister Narendra Modi, gave its approval to renew LTAs with Japanese and South Korean steel mills for supply of high grade Indian iron ore, during the three year period from April 2015 to March 2018.

The quantities covered under the LTA will be in the range of 3.8 to 5.5 MT annually and will be supplied primarily from the mines of NMDC and the contract will be executed by MMTC.

India has been supplying high grade iron ore to Japan and South Korea under LTAs for the last four to five decades.

Sai informed the House that India has sufficient quantity of iron ore, at present, to meet domestic demand. However, there may be regional shortages in some states like Karnataka due to legal and regulatory issues.

Export duty at the rate of 30 per cent ad valorem on all iron ore varieties with effect from December 30, 2011 and 5 per cent ad valorem on iron ore pellets with effect from January 27, 2014 have been imposed, he added.

"Further, export duty at the rate of 10 per cent has been levied on iron ore containing Fe (Iron) less than 58 per cent with effect from April 30, 2015," the Minister said.

Source:business-standard.com