Shares of JSW Steel fell over 2% to ₹946.85 following reports of Karnataka’s proposed iron ore duty hike. The Karnataka government is reportedly considering a hike in iron ore duty, aiming to boost revenue collections. A draft proposal has already been circulated, with a decision expected soon, according to CNBC-TV18.
Key Highlights:
- Revenue Target: Karnataka aims to collect ₹10,000 crore from the proposed duty hike this year.
- Contribution: The state contributes 35% of India’s total iron ore output, making this move significant for both mining and steel industries.
- Supreme Court Approval: The SC has allowed states to collect mining taxes retrospectively from 2005, bolstering the government’s position.
Impact on Steel Industry
The decision, while aimed at improving fiscal health and supporting infrastructure development, is expected to increase input costs for steel companies dependent on Karnataka’s iron ore supply.
Disclaimer: This update is based on reports and subject to confirmation.
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JSW Steel