EXPOSE: A tweak in rule and iron ore export scam worth Rs 2 lakh crores under Modi govt, claims Congress

Two days after former NDA minister Dilip Ray was convicted in the Jharkhand Coal Scam by a Special CBI Court, the Congress party, in a sensational revelation, alleged that an iron ore export scam worth Rs 40,000 crore took place under the watch of the Modi government over the last six years.

If the penalty, which should be five times of the scam, is added, this becomes a scam worth nearly Rs 2 lakh crore, said the Congress in a press conference on Thursday.

Congress spokesperson Pawan Khera alleged that the Modi government changed the export laws to favour corporates who funded BJP’s campaign. However, he did not take the name of any private company or corporate.

Terming the scam as the “Modi-made iron ore export scam”, Khera alleged that the Modi government, after assuming power in 2014, removed the 64% concentration cap on iron ore and allowed Kudremukh Iron Ore Company Limited (KIOCL) – a public sector company under the Ministry of Steel – to export iron ore to countries like China, Taiwan, South Korea and Japan.

Notably, on September 10, the Ministry of Law and Justice clearly specified that the permission to export iron ore pellets was only given to KIOCL.

As per Khera, the Modi government also diluted the export laws, saying that if the iron ore is exported as pellets then there would be no duty on these exports.

“Taking advantage of the new laws, several private firms indulged in the export of iron ore pellets, escaping duty on these exports and earning immeasurable profits,” alleged Khera.

It is important to mention here that in the time of the UPA government, only Metals and Minerals Trading Corporation of India (MMTC) – a public sector company – was allowed to export iron ore. That too, the company had to take permission from the government before the export, said Khera.

“By not paying the export duty, private players have robbed the government of around 12,000 crore in duty fee. Under the Foreign Trade Development and Regulation Act 1992, these private players are liable to a penalty of Rs 200,000 crores for this gross illegality,” asserted Khera.

Demanding an investigation into the scam, Khera said the Modi government should answer the following questions:

• Why was high quality iron ore with greater than 64% iron concentration allowed to be exported contrary to earlier practices?
• Which all private firms have exported iron ore without permission since 2014? A detailed list must be made public.
• Was the change in policy of removing export duty for iron ore pellets done in consultation with all stakeholders?