Ministry requests FinMin to withdraw 5% export duty on pellets

Imposed duty could hurt livelihood of 80,000 people employed

The Ministry of Mines on Wednesday requested the Finance Ministry to scrap 5% export duty imposed on iron ore pellets stating that the move would not just hamper the pellet industry but would also affect other dependent segments like ports and railways.

In its letter dated February 26, the Mines Ministry said imposition of such a duty would gradually close down the pellet industry in turn hurting the livelihood of about 80,000 people who are employed directly and indirectly. Business Standard possess the copy of this letter.

The pellet industry which already has an investment of Rs 35,000 crore will eventually lie idle turning into a non-performing assets and also affect other dependent sectors such as railway and ports.

"I shall be grateful if the petition receives your personal attention and the 5% export duty on the commodity is abolished at the earliest," said the letter.

Earlier, in order to support the pellet industry, various ministries like Commerce Ministry, Standing Committee of Parliament on Coal and Steel and various Members of Parliament have come out in open to support the industry and have represented to the Steel Ministry and Finance Ministry to withdraw the 5% export duty on pellets.