Govt relaxes iron ore pellet export norms for KIOCL Ltd

Earlier exports of iron ore pellets was permitted only through state trading enterprises

The government has allowed state-owned Kudremukh Iron Ore Company (KIOCL) to directly export iron ore pellets in a bid to revive the cash-starved company.

“KIOCL Ltd (formerly known as Kudremukh Iron Ore Company Ltd) has been permitted to export its own manufactured iron ore pellets either by itself or through any entity authorised by them for the purpose,” Directorate General of Foreign Trade (DGFT) has said in a notification.

Earlier exports of the iron ore pellets manufactured by the company was permitted only through state trading enterprises (STEs). KIOCL is planning to raise its pellet production to 10-14 million tonnes (MT) from 3.5 MT now through a series of joint ventures with government-owned firms in Karnataka, Andhra Pradesh and Odisha.

It is also geared up for opening its new vertical in the operation and maintenance for better utilisation of manpower and expertise. Company’s Managing Director Malay Chatterjee had asked Steel Minister Narendra Singh Tomar to consider allocating mining leases pending with various governments and give a captive mine on an urgent basis to help rejuvenate the firm.

The iron ore mining operation of the Bangalore-based PSU was stopped since 2005 following a Supreme Court order. It now depends on NMDC for iron ore to run its pellet plant in Mangalore and is operating the plant with thin margins. The company has also asked the government to roll back the 5 per cent export duty on iron ore pellets.