ENA State 2018-11-27 05:54:17 <p><strong>New Delhi, Nov 27 (KNN)</strong> A letter has been written to Prime Minister Narendra Modi by HD Kumaraswamy, Karnataka Chief Minister seeking intervention in iron import and increasing the basic customs duty on the mineral. </p> <p>In the letter, the Chief Minister said Karnataka was the third largest producer of iron ore, a key raw material used in steel making, and steel producers are importing ore at a time when the country is facing a large trade deficit.</p> <p>The status of Karnataka iron ore is unique with the Supreme Court capping the annual production and restricting the sale among end-users only through e-auction, the letter said.</p> <p>This has led to a situation where a huge quantity put up for sale on e-auction platform remains unsold. We see steel companies are importing a huge quantity of iron ore... when the country is facing large trade deficit, it said.</p> <p>Kumaraswamy said the import duty on iron ore and pellets is suitably raised.</p> <p>He mentioned that the steel players are encouraged to go for import rather than utilizing the local ore, as the import duty is very low of 2.5%.</p> <p>He said, The State has already lost more than Rs.600 crore during the last financial year and the current year because of import.</p> <p>The unsold stock may lead to closure of mine operations, the Minister added.</p> 21396 https://knnindia.co.in/news/newsdetails/state/karnataka-urges-pm-to-seek-intervention-in-iron-import-increase-basic-custom-duty-on-minerals 2018-11-27 05:54:17 knnindia.co.in