The Indian government is considering the withdrawal of the export tax of Rupees 300/mt ($7.5/mt) on iron ore pellets, which was imposed by the country's Ministry of Finance last year as a part of the export duty on iron ore with 62 percent or more iron content. The correction to the Indian budget on the issue may be made in time for the coming fiscal year.
Although there had been no formal proposal to impose an export duty on iron ore pellets, under a new classification introduced by the Indian Customs Department, pellets fell under the category of minerals covered by the iron ore export duty. The steel industry has since brought the issue to the attention of the Ministry of Finance a number of times.
Removal of the duty in question will provide a considerable relief to steel companies like JSW, Essar Steel and KIOCL, which export pellets in small quantities.