Tata Sponge Iron Ltd is likely to raise price of sponge iron to offset rising costs on the backdrop of revision in mining royalty rates.
"Costs are expected to go up by Rs 400 to Rs 500 a tonne in case of sponge iron depending on the market," Tata Sponge MD DP Deshpande said on the sidelines of CII organised manufacturing conclave.
Royalty rates for iron ore mining has been revised to 15 per cent, from the previous 10 per cent.
The industry, he said, is in no position to absorb costs therefore it is resulting in price rise.
