Indian steel producers seek import duty waiver

Indian alloy steel producers have appealed to the steel ministry to waive import duties on direct reduced iron (DRI) pellets produced using gas or hydrogen-based processes.

This request is in line with the Ministry's focus on environmentally friendly steel production. Currently, imports of DRI pellets or hot iron briquette, which produce less carbon emissions compared to traditional raw materials for steelmaking, are subject to a 5% tax.

The Alloy Steel Manufacturers Association of India (ASPAI) recommends that this tax exemption be considered as part of efforts to reduce domestic carbon emissions. Research by the ministry indicates a possible shortage of scrap, a low-carbon alternative for steel production. The import of scrap is tax exempt.