Did NMDC under-invoice iron ore export?

BANGALORE: The public sector National Mineral Development Corporation (NMDC) is suspected to be in the muddle of evasion of customs duty in the export of iron ore by under-invoicing the shipment during 2006-10 to the tune of over Rs 2,200 crore.The report has separately recorded the cases of under-invoicing of iron ore export in chapter four. According to it, as many as 478 suspected cases were unearthed during the investigation for the period between 2006-10. The total amount of under -invoiced export of iron ore was computed to over Rs 2222,26,09375 calculated at Rs 40 per USD.The inquiry also revealed that in many cases, exporters had preferred consignees for under-invoiced exports.The public sector NMDC exports high grade iron ore.  Investigations found that the sales rates of NMDC was very low as compared to other exporters and prevailing market rates pertaining to the same period.When the average rate of iron ore of all grades was fluctuating between 116 and 168 USD per metric tonne, the rates charged by NMDC were between 50 and 63 USD per MT. The PSU’s iron ore export realisation is far less than the potential earnings, the report said.Coming to the conclusion that over 174 cases of under-invoiced exports of iron ore fines and 45 suspected cases of under-invoicing of exports of iron ore lumps during the periods of ad valorem regime took place, the Lokayukta recommended scrutiny into the issue of evasion of custom duties and fix responsibilities on the officials involved. Stating that the NMDC had suffered heavy losses after adopting fraudulent methods in the pricing of the iron ore exported, the Lokayukta recommended the ministry to take note of it and initiate action to recover losses.