The Government has reportedly scrapped a 5% export duty imposed on iron ore pellets in view of the falling global prices and the lack of demand for such ore among domestic steel producers. The 5% export duty was imposed in January 2014. The latest step is expected to benefit pellet makers, which include top miners, as well as leading steel companies, according to a business daily.
More than half of India^s installed pellet making capacity of 90 million tonnes (MT) is unutilised due to poor demand. Pellet manufacturers had been insisting on removal of the export duty and a revision in distance-based charges to facilitate exports.