State-owned Pellet manufacturer and exporter, KIOCL (formerly known as Kudremukh Iron Ore Company Limited) is all set to ship first export consignment to Iran. Vessel named ‘MV HAMGAM’ has been nominated for carrying 55,000 MT of Iron pellets from Mangalore port to Iran, said industry sources.
KIOCL’s CMD, Malay Chatterjee had earlier intended that he witnesses high potential in Iran and the company is proposing to open up an export mechanism for exports of Iron pellet.
KIOCL had earlier shipped 1-vessel of about 48,000 MT to China in Aug’14. The company had suspended Pellet exports since Aug’11 owing to the imposition of distance based charge (DBC) on exports by the Indian Railways. Also, the levy of 5% duty on export of Pellets and high cost involved in sourcing raw material from Chhattisgarh had prompted KIOCL to discontinue exports. However, earlier the government had allowed KIOCL to directly export Iron pellets.
“KIOCL has been permitted to export its own manufactured Iron ore pellets either by itself or through any entity authorized by them for the purpose,” Directorate General of Foreign Trade (DGFT) has said in a notification.
Earlier, export of Iron ore pellets manufactured by the company were permitted only through state trading enterprises (STEs).
Iran: Potential Market for Indian Pellet Suppliers with shortfall of 10 MnT
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