Infrastructure sector gets a boost– FM announces Rs
50,000 crore of tax free bonds to raise money for infrastructure & targets
$1 trillion in infrastructure in the 12th plan.
He also says that Infrastructure Debt Funds will be
encouraged & proposes to constitute regulatory authority for the roads
There is good news for home loan takers as
people taking a home loan in 2013-14 for an amount up to Rs 25 lakh will be
allowed an additional deduction of Rs 1 lakh.
Rs 600 cr for rural housing fund in 2013-14 has also been
build of two new major ports, one at Sagar and another in Tamil Nadu. To
encourage investment, companies would be given investment allowance for
projects of Rs 100 crore or above between April 1, 2014 and March 31, 2015. The
companies would be allowed to deduct 15% of the investment in addition to the
normal depreciation rates.
Spot iron ore prices in Chinese market remain unchanged amid low buying interest and limited stock inventories at Chinese port. Australian PB fines of 61% Fe was traded at around $150/t CFR, where as offers from South African and Chile for Fe 63.5 Fe fines are in range of $147-152/t CFR.
“Buyers are reluctant to take positions on falling steel prices in Chinese market. Billet and HRC prices have corrected for last 3 days. Also with cyclone in Australian port clearing, supply will improve and iron ore prices may fall,” said an iron ore trader based in Rizhao port.
India reported a fall of over 68% in exports of Iron ore during April 2012 – Jan 2013, over corresponding period of previous year, on mining restrictions in the states of Odisha, Karnataka and Goa.
Indian exporters also limit their purchases from domestic market on low demand from Chinese buyers. With Shah commission's final visit in Odisha, supply of iron ore from the state will be hampered.
Indian exporters highlight that 63.5/63 Fe iron fines is in the range of $152-153/t CFR China.
Pig iron market in the Northeast region of China has remained more or less similar in comparison to the previous week.
Steel mills are making no extra purchases of Pig iron at the moment on account of factors such as high cost of production and weak demand.
Some of the companies into casting have not yet resumed operations and are also holding stock in large quantities.
Looking at the current scenario, few of the steel making plants have taken a shut down on maintenance reasons.
In Tangshan, steel Pig iron is being traded at same price level, in the range of Rs 2,780-2,820/MT (ex works prices inclusive of 17% VAT on cash basis).
M.B.Shah Commission of enquiry for illegal mining will held a separate hearing
on rule-37 violation on 16th of March at its Ahmadabad office. The
rule-37 of the MCR deals with the issue of subcontracting of mining lease area.
On the first day of
hearing Justice Shah pointed out that there should be a clear policy on rule 37
violation. Ã¢â‚¬Å“The rule must make it clear that who should be held responsible for
violation,Ã¢â‚¬Å“ he said while responding to the objection raised by Senior Counsel Ram
Jethmalani appearing on behalf of Thriveni Earth Movers, a mining contractor. Mr. Jethmalani argued that on the issue of excess raising of minerals the original
lease holder should be hold responsible, not the subcontractor.
On the other
hand senior lawyer A.B.Deewan appearing behalf of Serajuddin Mines also raised
question on rule-37.
On the first day
about 15 miners including OMC, Tata Steel, Essel mining, KJS Ahlualia, Indrani
Pattnaik and Serajuddin, K.P.Enterprises, R.P.Sao, Kalinga Mining
Corporation, P.K.S.Ahluwalia, D.R.Pattnaik, Tarini minerals were asked to
clarify their stand regarding the violation of various rules of the MMDR and
expressed their objection over the Google maps and the satellite maps of the
mining area. Appearing on behalf of P.K.S.Ahluwalia, senior counsel Gopala
Subramanyam said, Ã¢â‚¬Å“for determining encroachment the commission used inaccurate Google
maps and superimposed it on the revenue maps to justify illegal mining. Similarly,
differential global positioning system (DGPS) maps prepared by the Odisha
Remote Sensing Application Centre (ORSAC) are also not correct and hence a
fresh physical verification should be done.Ã¢â‚¬Â He also demanded fresh
determination of the lease boundaries of the mining area.
this Justice Shah said that the commission do not have adequate manpower to
determine the mining lease area and for this he has to rely on the state
Reported by Tapan Moharana
Bengal supply finish products like TMT, Structure and wire rod to U. P & Bihar but due to Kumbh festival, transportation went down in the region.
It is being heard that, Raigarh Ingot sold to Ghaziabad at Rs 28800-900++ (reguler payment) and also Raigarh sold
Ingot to Raipur at FOR Rs 29200++ (payment next day). However
major buying were seen from U.P
Manufacturers waiting for
finish demand to increase after budget.
Ã¢â‚¬ËœWe expect market to revive, as major
finish buying was stopped due to budget session as buyer anticipated change in
Excise duty,Ã¢â‚¬â„¢ said an Ingot manufacturer based in Raipur.
In the Union Budget 2013-14, announced by the Finance Minister P Chidambaram today, there has no cut down in the 30% export duty on both Iron ore lumps and fines.
Union Mines Minister Dinsha Patel and Federation of Indian Mineral Industries (FIMI) had sought a 50% cut on export duty in the Budget 2013 so as to boost production and enhance exports of low grade fines which cannot be used in domestic market.
Finance Ministry is encouraging steel industry to use iron ore for domestic purposes as reserves are not in plenty.
Indian Iron ore export figures witnessed a sharp drop of 68% in April 2012 to January 2013.
Exports of iron ore after value addition will result in better realizations and desired returns.
In the last year's budget, government lowered basic customs duty on plant and machinery for setting up of iron ore pellet plants or iron ore beneficiation plants from 7.5% to 2.5% to discourage exports.
In the Union Budget 2013-14, India's Finance Minister, P. Chidambaram has declared that customs duty and countervailing duty of 2% each will
apply on Imported Steam coal and Bituminous coal.
Earlier, Customs duty and CVD on imported steam coal was 0%
& 1% respectively. And, Imported Bituminous coal attracted customs of 5%
and CVD of 6%. This move has come to bring in more clarity for the customs
department, since both the materials are used in power generation.
Mr. Chidambaram also said that India needs to reduce
dependency on imported coal as the country has abundant coal reserves managed
by Coal India Limited (CIL).
The finance minister in his budget speech also highlighted that
coal imports to India is estimated to reach 185 million tons by 2016-17 from
about a 100 million in 2012-13.
Also, in conjunction with the idea of denationalization of
Coal floated earlier by the planning commission, the government has indicated
encouraging Public Private Partnership coal projects along with Coal India.
Last federal budget for the government announced on 28th Feb 2013, failed to cheer steel sector in large. Although with focus on rural development, some experts feel that this will give some boost to steel demand and also increase capita per consumption of steel.
Highlights of Union Budget
1. Export duty on exports of
Iron Ore unchanged at 30%
1. To levy 2% Customs, CVD
on coal (Steam and Bituminous) imports
2. Coal blending only solution as coal imports to rise
185 million tonnes by 2016-17, will work on PPP projects with
1. Finance minister giver big boost to infrastructure sector; looks to spend on rural development
2. Propose to provide
Rs 600 cr to rural housing fund in 2013-14
3. FM announces Rs 50,000 crore of tax free bonds to raise money for infrastructure & targets $1 trillion in infrastructure in the 12th plan.
4.Infrastructure Debt Funds will also be encouraged & there is a proposal to constitute regulatory authority for the roads sector
kept unchanged at 12% and Educational cess at 3%
1.No duty on import of
Government today asserted that thermal power plants were not
facing shortage of coal following the de-allocation of 22 coal blocks for
failing to develop the facilities but admitted that coal production was low
compared to new power projects being set up in the country.
Coal Minister Sriprakash Jaiswal told the Lok Sabha during
Question Hour that, “no power plant has been shut due to shortage of coal.”
At the same time, he conceded that the country was facing
coal shortage but noted that coal was being imported to overcome the problem.
There was a mismatch in the ratio of coal being produced and
new power projects being set up, he further added.
To a supplementary, Jaiswal said several companies have
moved courts against de-allocation of coal blocks and the Government would file
counter affidavits to defend its action.
Sesa Goa's 6 mt Narrain mine in Chitradurga (B category) is anticipated to resume operations provided CEC's recommendations made in the week before is accepted by the Supreme Court.
In August 2011, Court banned mining in Karnataka and A and B category mines that is expected to re-start mining soon. The court is to hear Karnataka mining case for three days i.e up to thursday and then start with Goa mining case.
Mr P K Mukherjee, Director Ssa Goa said that apart from huge current account deficit and impact on foreign exchange reserves, one-third of the population is reeling under uncertainty, 25% of the broad state domestic product has gone and one-third of the population is reeling under uncertainty. 255 of the broad state domestic product has gone and one-third of the state's revenue has gone.
Exports of iron ore from Goa accounts for 50% of its revenue which goes to the exchequer in the form of export duty, government royalty and in the form of income tax.
Once mining and exports begin, iron ore is likely to be sold at discount due to risk premium.
Though Supreme Court is permitting to start mining, but approvals such as Ministry of Environment and Forest (MoEF) which are all lapsed need to be in place.
Also, if Supreme Court can give an appropriate directive to ministries to allow us to temporarily start mining.
The official is hopeful to get some inventory liquidation permission from Cout in Goa atleast.
For its Pig iron operations, Sesa Goa has no plans to import a huge quantity of the expensive raw material.