For iron ore beneficiation units, the Steel Ministry has desired a zero import duty, at 2.5% currently and incentives on machinery for iron ore beneficiation units.
“We have suggested that the value-addition of iron ore is a must as exporting the raw material minus value-addition does not ensure desired returns and domestic reserves are not in plenty,” a Steel Ministry official said Business Standard.
Exports of iron ore pellets other than low grade iron ore will result in better realizations.
To preserve iron ore and discourage its exports, in the last year's budget, government lowered basic customs duty on plant and machinery for setting up of iron ore pellet plants or iron ore beneficiation plants from 7.5% to 2.5%.
Leave a Reply