Tuesday, October 20, 2020
Home News Reports Congress screams ‘scam’ in Iron Ore Pellet export based on policies introduced during Congress...

Congress screams ‘scam’ in Iron Ore Pellet export based on policies introduced during Congress government: Read details

It is intriguing that in the same year when export duty on iron ore pellet was made zero, state owned KIOCL stopped export pellets. This means, only other entities benefited from the zero export duty regime during the UPA govt, not KICO

On Thursday, the Congress party made allegations against the Modi government claiming irregularities in iron ore pellet export. The party alleged that an iron ore scam worth Rs 40,000 crore took place in the six years during the rule of Modi government.

In a press conference addressed by Pawan Khera, the Congress party alleged that in 2014, the Narendra Modi government changed the export duty on iron ore pellets to zero, which was 30% earlier. He said that while the govt retained the export duty 30% on iron ore, they reduced it to zero on exports of Iron Ore Pellets. He also added that the govt allowed KIOCL (Kudremukh Iron Company Limited) to export iron ore to China, Taiwan, South Korea and Japan.

The Congress spokesperson added that earlier only KIOCL was allowed to export iron ore, but after the change in policy, several private companies started exporting ore in the form of pellets, and didn’t pay any export duty on it. The Congress spokesperson claimed that the private companies didn’t have any permission to export iron ore, and they not only exported pellets, but also evaded tax on it. He said that the quantum of the scam was Rs 40,000 crore, and the companies evaded Rs 12,000 crore in taxes.

But these claims by the Congress party are false and baseless. According to govt sources, these are unsubstantiated claims which reflect the party’s “sole motive to kill India’s exports and hurt our domestic industry.”

First, the Congress party alleged that export duty on Iron ore pellet was removed in 2014, but that is completely false, because it was the UPA government which had started the zero duty on pellets in 2011 itself. In the budget speech for 2011-12, the finance minister Pranab Mukherjee had announced, “Full exemption from export duty is being provided to iron ore pellets to encourage the value addition process for fines.” In the same budget, export duty for all other types of iron ore were changed to 20 per cent ad valorem.

The second claim that only Kudremukh Iron Ore Company Limited is allowed to export iron ore pellets is also totally wrong. Ministry of Law and Justice has not made any such rule as claimed by the Congress party. The fact is, Government of India has only referred the matter to Law and Justice for their opinion. The matter is further under consideration for the views of competent authority. No decision has been taken yet on barring other companies from exporting iron ore pallets.

Read: Indian economy shows signs of recovery as exports go up by 13% in the first week of September

The biggest lie by the Congress party on the matter was that KIOCL was the only company exporting iron ore pellets before 2014. Export of iron ore pellets were never an exclusive right of KIOCL, and it was always free, after the sector was opened up in 1992 during economic linearisation. There was, however, a restriction that only KIOCL could export pellets produced by it. This means, while others were allowed to export pellets freely, it was not the case for KIOCL. In fact, the company didn’t even export any pellet between August 2011 and August 2014, during the UPA rule.

In 2014, the Modi government changed the rule for KIOCL to export pellets manufactured by it. As per the amended rule, KIOCL was allowed to export its own manufactured iron ore pellets either by itself or through any entity authorized by them for the purpose. It didn’t mention anything about allowing private entities, which were already allowed. As can be seen in the notification, the earlier export policy for KIOCL was STE (State Trading Enterprise), which was changed to Free. This means, earlier KIOCL was allowed to export pellets only through PSUs, but now they are allowed to authorise any entity for this purpose. This rule is only about pellet made by KIOCL, this does not talk about any private company exporting pellets as the Congress is alleging.

The data for the Iron Ore Pellet from 2004 to 2014 exposes the lies of Congress party. India exported 2.09 lakh MT of Iron Ore Pellet in 2011-12, 20 MT in the next year, and 17.13 lakh MT in 2013-14, in the years when KIOCL didn’t export any pellet.

Export of Iron Ore Pellets

This shows other entities were exporting pellets during UPA govt, and it was not something that started after Modi govt came to power. A total of 1.4 lakh crore tonnes of Iron-Ore Pellets were exported during Congress-led UPA Government, and from 2011 onwards, the export duty on the same was zero.

In fact, it is intriguing that in the same year when export duty on iron ore pellet was made zero, state owned KIOCL stopped export pellets. This means, only other entities benefited from the zero export duty regime during the UPA govt, not KICO. The company restarted export pellets in August 2014, 3 months after Modi govt came to power.

Therefore, the allegations made by the Congress party claiming a scam on iron ore pellets are completely baseless. Zero export duty on pellets were started during UPA govt, and entities other than KIOCL were exporting pellets during the Congress-led UPA govt.

  Support Us  

Whether NDTV or 'The Wire', they never have to worry about funds. In name of saving democracy, they get money from various sources. We need your support to fight them. Please contribute whatever you can afford

OpIndia Staffhttps://www.opindia.com
Staff reporter at OpIndia

Related Articles

Trending now

Game over for India Today? CBI registers FIR in TRP Scam after UP Govt recommends probe based on private complaint

CBI has registered an FIR to investigate the TRP scam after a private complaint was registered in Lucknow, Uttar Pradesh.

‘Lockdown over but Coronavirus still here’: As PM Modi rings warning bell ahead of festive season, here are key takeaways from his address

In his 12-minute address, PM Modi urged people to maintain caution and wear masks while stepping out of their homes

The social hierarchy of Muslim society: Is the caste system a problem unique to Hindus?

Often ignored by the media, there is wide scale discrimination present in Muslim society between two factions- Ashraf and Ajlaf.

The MP who was sentenced to death: In Bihar elections, Anand Mohan Singh’s wife and son are now RJD candidates

Son and wife of Anand Mohan Singh, first-ever MP to get death sentence, are contesting in upcoming Assembly Elections in Bihar

FT publishes damning investigation implicating China, WHO and their role in the spread of Coronavirus: Here are 7 takeaways

The Financial Times carried out an investigation about China's initial mismanagement and complacency that led to a global coronavirus pandemic

After Mumbai Police harasses Arnab Goswami, ex-cop Iqbal Shaikh approaches court to stop Republic TV from reporting on TRP scam: Read details

Iqbal Shaikh accused Arnab Goswami and Republic TV of engaging in a smear campaign against Mumbai Police.

Recently Popular

After Chinese phones blocking weather data for Arunachal and Ladakh, now Twitter shows Leh as part of China

Security analyst Nitin A Gokhale found that Twitter has labelled Leh in Ladakh as part of People's Republic of China (PRC)

During 26/11 Mumbai attack, Param Bir Singh refused to be on ground and take on terrorists, then Mumbai CP Hasan Gafoor had said

Hasan Gafoor, who was the Mumbai Commissioner of Police during the 26/11 Mumbai terror attacks, had accused senior police officials, including Param Bir Singh of not taking on the terrorists.

In 2012 ‘out of town’ Salman Khan partied with Parambir Singh in Mumbai on day Bandra cops could not serve him Court summons for...

As reported by Mid-Day in 2012, Salman Khan and Parambir Singh were both found attending a Christmas party hosted by Sunny Dewan and his wife Anu Dewan in Mumbai. This when the Bandra cops claimed Khan was not in town.

UK: 37-year-old paedophile named Rehan Baig jailed for raping chickens to death while his wife filmed it

Rhan Baig's wife had also joined him in the videos and at one point he alternated between having sex with his wife and the chickens.

Anti-Trump legal analyst of CNN and The New Yorker contributor suspended after masturbating on Zoom call

Jeffrey Toobin has offered an apology for masturbating on the Zoom video call and said that he thought he had put the video and audio on mute.

Rajdeep Sardesai and India Today secure a gag order against social media user who had said they took 8 crores for Rhea interview

Issuing an order on India Today petition, the Delhi HC has ordered Twitter to suspend the man named Anurag Srivastava, and Google to remove the content from search results.
- Advertisement -

‘Comedian’ Agrima Joshua, who calls herself ‘feminist’, passes offensive sexual comments against woman due to political differences

Agrima Joshua had earlier found herself in a controversy after insulting the Shivaji Maharaj memorial during a performance.

Bihar: Police arrest National Ulema Council Party candidate for campaigning on buffalo

Gaya Police has arrested Mohammad Parvez Mansoori for campaigning on a Buffalo for the upcoming Bihar Assembly Elections.

Game over for India Today? CBI registers FIR in TRP Scam after UP Govt recommends probe based on private complaint

CBI has registered an FIR to investigate the TRP scam after a private complaint was registered in Lucknow, Uttar Pradesh.

Paris beheading case: Victim Samuel Paty to be conferred France’s highest order, mosque to be shut down

Days after the history teacher beheading by a radical Islamist in Paris, the French govt has decided to confer the highest order of merit Legion d'Honneur posthumously.

‘Lockdown over but Coronavirus still here’: As PM Modi rings warning bell ahead of festive season, here are key takeaways from his address

In his 12-minute address, PM Modi urged people to maintain caution and wear masks while stepping out of their homes

The social hierarchy of Muslim society: Is the caste system a problem unique to Hindus?

Often ignored by the media, there is wide scale discrimination present in Muslim society between two factions- Ashraf and Ajlaf.

UK: 37-year-old paedophile named Rehan Baig jailed for raping chickens to death while his wife filmed it

Rhan Baig's wife had also joined him in the videos and at one point he alternated between having sex with his wife and the chickens.

#Tweet4Bharat: Here is a list of the winners in the English category and their winning tweet threads!

The participation exceeded expectations greatly and finally, after much deliberation, we are now in a position to declare the winners.

Madrasas are breeding grounds for terrorists: MP cabinet minister Usha Thakur

BJP MLA from Indore, Usha Thakur said that government funding to all madrasas should come to an end

The benign gibberish on AajTak: How a clueless anchor and a clueless journalist discussed how clueless they are

Since no news channel seem to have any prior information about the PM's message, Aaj Tak probably decided to share random sentences repeatedly.

Connect with us

245,563FansLike
465,242FollowersFollow
18,800SubscribersSubscribe