| The committee had recommended that rates of royalty should be fixed on the basis of ad valorem rather than the existing practice of specific duties. The reference rate could be that prevailing in Western Australia "� 11.5 per cent. |
| The present rate of specific duties is approximately 2.5 per cent. The royalty on iron ore comes up for revision during October 2007 (once every three years). |
| "It is up to the government to take a decision on revising the royalty. We support the Huda Committee finding on revision of royalty. All the mine owners are ready to pay the royalty and none of them are opposing the proposal," said FIMI Secretary-General R K Sharma. |
| At the same time, the Union ministry of commerce should keep the iron ore exports policy stable and continue to issue licences to mine owners. |
| "This will help the industry to plan its production on a long-term basis for domestic requirements as well as exports. It will also help in evolving the export of value- added products, such as pellets, pig iron and sponge iron," he added. |
| He urged the government to set up a task force of experts to reassess iron ore resources. |
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