According to the pricing policy being followed by NMDC, the prices of various products of its mines are kept in sync with the prevailing domestic iron ore prices in other sectors.
NMDC is fixing its domestic prices keeping in view prevailing iron ore prices in other sectors and demand supply scenario for its iron ore. Union Minister of Steel, Beni Prasad Verma informed this in Lok Sabha.
Prices of iron ore and steel are fixed by the individual companies based on commercial prudence and general market condition.
NMDC is one of the many iron ore producers in the country. Besides NMDC, there are many other public and private sector iron ore mining companies, which supply iron ore to the iron and steel industry in the country.
He said some representations have been received in the Ministry of Steel regarding pricing mechanism of NMDC. Being a Navratna Public Sector Enterprise, the commercial and financial decisions of the company are taken by the Board of Directors of NMDC.
The issue of pricing of iron ore is decided by the Board of NMDC based on various factors including prevailing general market conditions. The government generally does not interfere in commercial decisions of the company.
However, to improve availability of iron ore to domestic iron and steel industry at affordable price, the government has increased the export duty on iron ore to 30 percent ad valorem on all grades of iron ore (except pellets), the minister said.
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