Coking coal, anthracite, met coke, ferro nickel, limestone, manganese ore, and chrome ore are among the essential raw materials used in the production of steel that the Steel Ministry has proposed eliminating import duties on, while also arguing for a reduction in the tax on graphite electrodes in the upcoming Budget 2023–24.
The absence of duty is being justified by domestic unavailability, poor reserves, and the desire to reduce the cost of production for steel mills. India ranks among the top importers of coking coal and is the world’s second-largest producer of crude steel. In FY22, coking coal imports totaled 1,02,791 crore, according to ministry documents. New ideas include a complete duty waiver on limestone, which would result in income of 486 crore.
To keep slag basic, limestone or dolomite is employed (a key part of the steelmaking process). The import levy is currently set at 2.5%. A basic customs charge of 2.5% is applied to both chrome ore, which is used to create synthetic rubies (another component of steel production), and manganese ore, which is used to produce manganese steel (a product type). A complete waiver has been suggested. Graphite electrodes, which are used in electric arc furnaces to produce steel, are subject to a 7.5% tariff. It is suggested that it be decreased to 2.5%.
The Ministry has also advised against charging any taxes on steam coal and liquefied natural gas. Steam coal features a The Ministry has also advised against charging any taxes on steam coal and liquefied natural gas. Steam coal’s deadline is March 31, 2023.