Saturday, Nov 01, 2014

SteelMin to take call on roll back of export duty on iron pellets

According to the Pellet Manufacturing Association of India the investment amounts close to Rs 35,000 crore. According to the Pellet Manufacturing Association of India the investment amounts close to Rs 35,000 crore.
ENS Economic Bureau | New Delhi | Posted: February 20, 2014 3:02 am

The steel ministry is yet to make up its mind in recommending a roll back of the 5 per cent export duty on iron ore pellets, which has been suggested by a Parliamentary committee.

The Parliamentary Standing Committee had on Tuesday in its report had cautioned that failing to roll back the export duty may adversely impact the pellet manufacturing industry in general and state-run Kudremukh Iron Ore Company Limited (KIOCL) in particular.

Based on a plea from KIOCL, the panel had convened a meeting recently wherein the PSU said it is already facing serious challenges in the form of increased railway freight, high royalty rate and lack of domestic demand. Imposition of the export duty will hit its bottomline.

In its report, the committee criticised the government for reneging on its promise of facilitating the pellet industry based on which a large number of industries have made huge investments.

According to the Pellet Manufacturing Association of India the investment amounts close to Rs 35,000 crore. “The committee, therefore, recommend that steel ministry should immediately take up the matter with finance ministry at the appropriate level and apprise them of the action taken in the’ matter,” the panel’s report said.

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