Who: Union Government
What: Abolished export duty on Iron Ore Pellets
When: 5 January 2016
Why: To improve capacity utilisation of pellet plants and boost the sector
To improve capacity utilisation of pellet plants and boost the sector, Union Government on 5 January 2016 reduced export duty on iron ore pellets to zero from 5 percent.
A notification in this regard was issued by the Central Board of Excise and Customs (CBEC). The move will make the commodity more competitive amid subdued demand and weakening prices.
Iron ore pellet makers as well as some miners had earlier sought a reduction in the export duty on iron ore to make it more competitive. Steel and its related raw material market is facing a tough time on account of subdued demand and high production, adversely impacting the prices.
Earlier in 2014, the government levied a 5 percent export duty on iron ore pellets, which are value-added products of leftover material or low-grade iron ore and are used in steel-making.