Duty removal on ore pellet export enthuses Jindal Steel, others

The Union Budget has waived the entire 15 per cent duty on export of iron ore pellets, and Jindal Steel and Power is gearing to take advantage of the ensuing prospects. Pellets are made by moulding ore powder into desired configurations, with some value addition.

Sushil Maroo, JSPL’s director (finance), told Business Standard, “We have a 4.5-million tonne pellet making capacity, commissioned recently. By the plan, 50 percent is for our own consumption and the rest for sale in the domestic market.” Because of the duty waiver in the budget, he said, the company was now exploring the possibility of exporting pellets.

Maroo said, “Shadeed needs two million tonnes of pellets and can consume all our pellets earmarked for domestic sale. We have exported to them before and will look at doing it again, in bigger quantities. However, if we will do it or no would depend one pellet prices in the international market.” With its new 4.5-million tonne plant, it has become the largest pellet maker in the country. Maroo said, “The government is clearly pushing companies to go in for value addition. Even previously, we had exported small quantities and are now thinking of exporting more. This duty waiver has definitely opened the international market for us and gives us a lucrative opportunity to export pellets.”

The duty waiver on export of pellets has been cheered by the industry. S B S Chauhan, advisor, Federation of Indian Mineral Industries (Fimi), said: “Zero duty on pellet exports is a good idea and this will motivate more companies to set up plants in the country.” He said Fimi had made repeated representations to the finance ministry for withdrawal of export duty on pellets.

Rana Som, chairman and managing director of NMDC, said: “Now companies will look to set up bigger pellet plants to sell internationally, too.” The company is setting up two plants with a combined capacity of 3.2 million tonnes.