Despite objections by ministry, NDMC enters into export of Bailadila iron ore
Reply to an application filed under the Right to Information (RTI) Act by the Ministry of Steel has revealed that despite the objections raised by it, the National Mineral Development Corporation (NMDC) entered into an agreement with Japanese and Korean companies for the supply of iron ore from Bailadila mines in Chhattisgarh. The Bailadila mines have a limited ore stock of excellent quality which is estimated to last around 30 years.
The ministry of steel informed that NMDC and ministry of commerce were apprised with its opinion regarding the export to Japan and Korea which was ovelooked. However, the ministry of steel refused to disclose the copy of the opinion claiming that it could affect the commercial interests of NMDC.
RTI activist Kusum Chandrashekhar Gaur had raised the questions through the RTI application to ministry of steel. He alleged that after a break of two years from 2009 to 2011, the NMDC agains started export of iron ore to Japan under pressure from the Union ministry of commerce. The export is being done at a price lower than the domestic market thereby subsidizing Japan's steel industry. Gaur has questioned the rationale behind the exports at the cost of domestic units.