The Government is considering raising import duty on iron ore, a key raw material used in steel making, with a view to protecting the domestic industry, sources said.
"The matter is under discussion among different ministries including steel," they added.
The development assumes significance as recently Karnataka Chief Minister H D Kumaraswamy wrote to Prime Minister Narendra Modi regarding issues of the sector in the state and sought a hike in the import duty on the mineral. The Chief Minister had stated that steel companies are importing a huge quantity of iron ore at a time when the Country is facing the problem of large trade deficit.
Seeking the Prime Minister's intervention, Kumaraswamy had requested to suitably raise the import duty on iron ore and pellets.
The low import duty of 2.5 per cent encourages steel players to go for import rather than utilising the local ore, he had said.
Source :- Dailyshippingtimes.com