Congress accuses govt of Rs 12,000 cr scam in Iron ore export

Congress party, on Thursday, made serious allegations over Central Government, accusing it of Rs 12,000 crore iron ore export scam, saying, "PM Modi talks of Make in India but is caught selling India". Congress also mentioned that despite KIOCL being the only company that had permission to export iron ore, since 2014 several private firms have indulged in the export of iron ore pellets, escaping duty on these exports and earning immeasurable profits.

New Delhi: Accusing central government over iron ore export scam, Congress on Thursday said that PM Modi talks of Make in India but is caught selling India.

While addressing a press conference, Congress spokesperson Pawan Khera said, "After Modi government came to power in 2014, Steel Ministry of India removed the 64% of the concentration of iron cap on iron ore and along with that gave Kudremukh Iron Ore Company Limited (KIOCL) permission to export iron ore to countries like China, Taiwan, South Korea, Japan etc."

"In addition to this, a policy was drawn up where it was decided that iron ore exports will continue to have a 30% duty on them, however, if the same iron ore is made into pellets and exported as pellets then there would be no duty on these Exports," he further added.

Congress also mentioned that despite KIOCL being the only company that had permission to export iron ore, since 2014 several private firms have indulged in the export of iron ore pellets, escaping duty on these exports and earning immeasurable profits.

Khera alleged the scam was happening under the nose of Central Government or "incomplete knowledge" of Government but none of these private players were questioned by the Steel Ministry officials.

"It is estimated that these private firms have exported iron ore worth Rs 40000 crore since 2014, violating the law as they did not have the licence to export the ore. This time the Government has allowed the theft of essential national resources which are the backbone of economic growth," he said.

Congress demanded that Prime Minister Narendra Modi should reveal the list of these private players who are involved in this scam while mentioning that under the Foreign Trade Development and Regulation Act 1992, these private players are liable to a penalty of Rs 200,000 crore for this illegality.

Khera also showed a Government order dated September 10, by Ministry of Law and Justice which stated that the permission to export iron ore pellets was only given to KIOCL.

"We demand that an investigation must be initiated to expose the corruption since 2014 and how officials in the Steel ministry allowed left in broad daylight," he added.