IN Ablow to steel makers, the committee on future iron ore pricing has rejected their plea for preferential pricing of ore from domestic suppliers including National Mineral Development Corporation (NMDC). The move is expected to adversely affect companies such as Rashtriyalspat Nigam (RINL), Essar, Jindal and Ispat that do not have captive mines and have to pay full export-parity pricing for ore from the domesticmarket. The committee has favoured continuation of the present pricing mechanism for long-term supplies of iron ore based on the recommendations of the Ganesan Committee, an official source told ET. It has also said any modification in the pricing and distribution formula should be decided in future by the board of directors of the concerned PSU in an appropriate manner so that the government need not intervene, the source added.
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