The Centre has reversed its previous order by deciding to scrap the export duty on iron ore lumps and fines with below 58 percent iron content and several steel products. Earlier the government had imposed export taxes on these metals due to soaring prices.

The government also lowered the export tax on iron ore and concentrates other than roasted iron pyrites to 30 percent from 50 percent.

The import duty concessions on anthracite/PCI coal, coking coal, coke and semi coke and ferronickel have also been withdrawn.

“The Central Government, on being satisfied that it is necessary in the public interest so to do, hereby makes the following further amendments,” the notification said.

“Decision to withdraw the export duty imposed on Iron and Steel items, immediately once the inflation numbers came to reasonable level shows the concern of the Government of India towards common man and the Industry” said Alok Sahay Secretary-General.

The additional taxation imposed in May was intended to boost the domestic supply of iron ore, a raw ingredient for making steel, and thereby hold down inflation.

India's iron ore exports had dropped to "nearly zero" in October due to higher export taxes and were further expected to languish due to lower demand from China, a senior industry official told Reuters earlier this month.

Producers of low-grade ore depend largely on overseas markets, as most major domestic steel producers consume high-grade iron ore, the Federation of Indian Mineral Industries (FIMI) said earlier this year.

The move came as a major relief to the steel industry which has lined up a massive capacity expansion plan.

“Am glad that there is a rollback as it was meant to be a short-term measure and was starting to affect the investment sentiment in the industry,” said T V Narendran, managing director and chief executive officer, Tata Steel.

“The domestic steel industry is grateful to the Hon’ble Prime Minister of India for taking the decision to withdraw the export duty imposed on iron and steel items on May 21, 2022. We are also thankful to the Hon'ble Union Ministers of Home, Finance, Commerce, and Steel for supporting the Industry,” said Dilip Oommen, President, Indian Steel Association and, CEO, ArcelorMittal Nippon Steel India and Executive Vice President, ArcelorMittal.

Image source: Reuters