Ever wondered why steel is so expensive in India?
Steel prices in India are completely market driven and generally lower than the prevailing domestic prices in countries like USA, Japan and higher than those in Chinese domestic markets. However, it is a fact that Effective Tax Rate (ETR) for iron ore mined in the country is one of the highest in the world. ETR in India & other countries is Annexed.
This information was given by the Union Minister for steel Dharmendra Pradhan in a written reply in the Rajya Sabha yesterday.
Owing to non-availability of low ash content coking coal in the country, over 92% coking coal requirement is met through imports, and whose prices are determined internationally. In case of iron ore, imports meet only about 7-8% of the country’s total consumption and balance being met indigenously.
MMDR Act, 1957 was amended in 2015 in order to streamline the allotment of Mining Leases in the country. Presently all Mining Leases are granted through auction.