Indian Union Budget: Import Duty on Iron Ore likely to be waived off- Sources

• Current import duty of 2.5% on Iron ore/Pellets
• Imports may reach to 5-6 MnT in FY15
• Iron ore production may fall in Odisha, key Iron ore producing state 

Reeling under a shortage of Iron ore, Indian steel companies may have something to cheer for in the union budget to be presented on 10 Jul, 2014 by newly elected government.  According to sources, government may waive off import duty on Iron ore & Pellets, which is at 2.5% on CFR value.

Import of Iron ore is expected to rise significantly in FY15 owing to recent mining suspension in the state of Odisha and slow recovery in Karnataka.

In case duty gets waived off, Indian steel manufacturers will get a benefit of INR 200-300/MT on importing Iron ore or Pellets.