Mineral-Rich States Brace for Economic Jolt with Proposed Export Duty

Mineral-rich states such as Karnataka, Goa, and Odisha may face economic setbacks if a 30% export duty on low-grade iron ore is implemented, warns the Federation of Indian Mineral Industries (FIMI). According to the body, the proposed duty could render the mining sector unviable, causing losses amounting to over Rs 16,000 crore.

The potential duties, intended to boost domestic supply, threaten to impact approximately half a million people reliant on the industry. As discussions in government circles suggest a possible hike in export duties from zero to 20-30%, industry experts urge careful consideration of its broader repercussions.

The imposition of the Maximum Permissible Annual Production (MPAP) cap, initially meant as a corrective measure in Karnataka, is also under scrutiny. FIMI argues that revising both the MPAP cap and the proposed export duties could mitigate negative outcomes and secure growth for the iron ore and steel sectors.