Karnataka urges duty hike on imported iron ore, pellets to aid local miners

State chief minister H D Kumaraswamy writes to PM Modi citing pile of inventory due to poor response to mandatory e-auction of these items of raw material

The Karnataka Government has asked the Centre to increase import duty on iron ore and iron ore pellets in order to protect domestic miners. The state has said it lost around Rs 6 billion due to high imports by local steel manufacturers.

The development comes against the backdrop of increasing inventory with the miners, due to high imports. Karnataka is the country's third largest producer of iron ore with an output capacity of about 35 million tonnes.

In a letter to the Prime Minister, Karnataka Chief Minister H D Kumaraswamy said the status of Karnataka's iron ore sector is unique,