Suggesting that both steel producers and iron more miners should work together for mutual benefits, Mines Secretary Shantanu Consul today said an understating between the two sectors could be a "win-win" proposition.
"Both steel and iron ore sectors are depended on each other and so should work together for a win-win situation," Shantanu Consul told reporters on the sidelines of annual general meeting of the apex body of miners FIMI.
Without ruling out completely the possibility of iron ore miners entering into long-term contracts with steel industry, Consul said the proposal should be looked at if it appears favourable for both the industries.
The steel industry has been demanding the government to ask miners for supplying iron ore on a long-term agreed prices. The miners, however, have shown little interest in the proposal as spot prices are higher than the agreed rate.
To sort out the issue, the Mines Ministry would shortly convene a joint meeting of mining and steel industries.
Other than pricing and long-term agreement (LTA) issues, the steel industry has also been representing to the government for an increase in export duty on iron ore to ensure its availability in the domestic market.
The miners are opposed to it and want the government to roll back the duty, saying it has resulted in unviability of iron ore exports.
"In over the last one month, India's iron ore exports have fallen by about 20 per cent primarily on account of imposition of 15 per cent ad-valorem export duty and higher freight charges," FIMI President, Rahul Baldota said.
Consul too said, "...It needs to be seen whether the government's objective behind imposing the duty on iron ore has been realised."
