Government’s decision to scrap export duty on chrome will adversely impact India’s largest stainless steel maker, Jindal Stainless, which said the move will lead to a Rs300-crore annual revenue loss.
The Government in Budget 2016-17 has proposed to scrap 30 per cent export duty on chrome ore, which is used for making stainless steel and alloys, besides metal plating to prevent corrosion. “This will impact domestic ferrochrome producers and impact the survival of struggling stainless steel industry as ferrochrome is a vital input for production of stainless steel,” a Jindal Stainless (JSl) spokesperson told PTI.
Asked about the impact, the spokesperson said: “It will impact company's revenues by Rs 300 crore annually.” Additionally, the move will also lead to a spurt in prices of domestically-produced stainless steel by Rs3,000-4,000 per tonne, he added. JSl Director S Bhattacharya said: “Removal of export duty would only encourage traders to mine the valuable resource and export it.”