PMO may resolve ministerial differences over iron ore exports

The prime minister's office (PMO) is reportedly preparing to step in to resolve inter-ministerial differences over iron ore exports.

The PMO will hold a meeting on the matter next Tuesday with the ministries of mines and steel, which hold divergent views on the matter.

The trigger for the meeting is apparently a letter from Karnataka chief minister B S Yeddyurappa to Prime Minister Manmohan Singh seeking a ban on iron ore exports.

Steel minister Virbhadra Singh, who has been pitching for a steep hike in export duty to 20 per cent on iron ore, on Friday went further and demanded a ban on exports in the wake of soaring domestic price of the mineral, which India is increasingly important to meet domestic growth targets.

''The steel ministry's considered view is a ban on iron ore exports… we should conserve the precious minerals and export value-added products,'' he told reporters.

At present, the export duty on iron ore fines is 5 per cent, while it is 15 per cent on lumps. Last month, the ministry had written to the finance ministry seeking a duty hike.

The issue of higher input costs faced by steel makers was brought up before the prime minister.